France looks for deduction amounting to 14 billion euros in 2014

  • As per reports in local media, France is supposed to reduce its expenditure by as much as 14 billion euros in 2014 in order to bring down its public deficit to 3 per cent of its aggregate economic production by 2015.

    The socialist government of France is looking to achieve this goal through reduction in budgets allocated for the ministers as well as bringing down the governmental assistance being provided to companies. The local governments in France will also face some heat as they see their funding go down in the upcoming year. However, the economy is presently facing a recession and the rate of jobless people has never been higher in France’s history.

    Francois Hollande, the President of France, also has other problems up his sleeve. At present, his approval ratings are stuck at 30 per cent and this has made him cagey as far as proper and speedy implementation of the decisions go. It has also been reported on French online media that the yearly growth in aggregate salary expenses for people employed in the public services will come down to 0.15% from the 3% this year. This will be done by following restrictive pay measures. The ministries are expected to see a 2% reduction in their operational budgets in 2014.