“The inflation forecast for 2015 is zero in France today.”
This was announced Wednesday 4 March, the Finance Minister Michel Sapin before the Committee on Finance of the Senate, while the initial government forecast was 0.9%.
A weak prices that do not fail to produce an effect “considerable brutality” on public finances, both on revenue or expenditure, noted the minister, noting:
Misalignment Benefits rising prices “There are savings we had planned and we can not see.” Indeed null
A zero inflation cancels out, somehow, decisions to freeze certain social benefits, that is to say not to bring these benefits on rising consumer prices. If these prices do not rise, contrary to what the government expected when making the measurement, the economy announced disappears. The lack of inflation also pissed VAT revenue.
The deficit target of 4.4% of GDP for 2014 will be respected
However, the lack of inflation is very interesting in terms of budget appropriations of the various ministries who will have need, in principle, 0.9% of the amounts allocated less.
The Minister nevertheless confirmed that for 2014, France would respect “substantially” the stated goal of a public deficit of 4.4% of gross domestic product (GDP). The final figure will be announced on 26 March.
No comments:
Post a Comment