The French government has announced a mini budget and alongside the spending cuts they want to offer €1.1bn of tax relief for low income households. They’ve revised down the 2014 estimated tax intake but have kept the overall public deficit target of 3.8% of GDP.

The EU target is 3.0% and France was given 2 extra years to bring it down to that level. They missed the interim 2013 target and are likely to miss the 2014 one too. Estimations have them missing the 3.0% target in 2015 as well with forecasts suggesting they will come in at 3.3% or worse.

With 1% growth forecast this year and a population venting their feelings via the European elections, you have to wonder how they are going to push through spending cuts and find the money for tax cuts.

Vive la France