French treasury out with 2017/2018 budget forecasts 27 Sept

  • treasury financing needs to rise to EUR 203.3bln in 2018
  • 2017 bond issuance plan unch at EUR 185bln, will rise to 195bln in 2018
  • 173.6bln issued in bonds so far in 2017
  • public debt to stay at 96.8% of GDP in 2017 and 2018 before peaking at 97.1% in 2019
  • deficit to fall below EU limit of 3% of output this year with a shortfall of 2.9% in 2017 before dropping to 2.6% in 2018

This from fin min Le Maire:

  • aims to convince EU that efforts on structural deficit are reasonable in light of spending cuts and economic reforms
  • taxes to be cut by EUR 10bln in 2018 with EUR 6bln for households and 4bln for corps
  • France has to seize the opportunity presented by firm growth expected this year and next at a 6-year high of 1.7% to bring its public deficit in line with EU rules for the first time since 2007

Budget min Darmanin:

  • confirms spending cuts in 2018 of EUR 16bln vs 20bln originally flagged by govt

France seemingly confident of achieving EU credibility with this 2018 budget, the first in the regime of Macron

Le Maire - France has to seize the opportunity of firm growth expected this year and next