That’s according to the leader of France’s socialist party in Les Echos, via Reuters. I, for one, will be shocked, absolutely shocked, if France do miss the 3% target
Kicking the can III. What could go wrong?
Update: Jean-Christophe Cambadelis was the one speaking in Les Echos and was asked if the 3% deficit target should be scrapped. He said;
“These ceilings were determined before the crises. And today, there is a new situation. There might be deflation. We might need to take that into account. We need time to slash the deficit and meet the 3% objective”
And people wonder why I rag on France
The government will be clarifying the state of public finances after they release Thursday’s Q2 GDP data. Growth was flat in Q1 and there’s not been much in the data to suggest that is going to change in q2. The market is looking for a quarter on quarter rise to 0.1% but a drop to 0.35 from 0.7% y/y.
