With an ever-changing Multi-faceted Balancing Act Needed

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That France is now paying more than Spain to fund itself is a reminder that the budget bill for 2025, due to be transmitted to parliament next week, needs to provide enough of a “first instalment” on a credible fiscal correction trajectory. The government is operating in a tricky macro context. French domestic demand is weak. Without the contribution from government consumption and investment, domestic demand would have been falling since Q4 2023.

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