France can reduce its budget deficit to 3 percent of GDP within three years despite the political turmoil in the country. The country’s central bank governor said this in an interview with CNBC.
France is currently subject to the EU’s excessive deficit procedure. The EU has urged the country to reduce the deficit, which amounted to 5.1 percent of GDP last year.
Concerns that political instability will make fiscal consolidation more difficult have put pressure on French government bonds, while the war between the United States and Iran has increased inflation concerns globally.
