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Reuters confirms that French Prime Minister Michel Barnier has resigned. At under three months in office, He is the shortest serving Prime Minister in the country's history. His resignation was in response to a no confidence vote. The Prime Minister failed to achieve support for his revised budget to address the country's deficit which has reached 6.1%. France is now more than €3.2tn in deficit. French financial analysts report that COVID-19 restrictions undermined economic viability and impacted business. With the deficit expected to reach 6.2% of Gross domestic product (GDP) by the end of this year, the French government risks a significant deficit. This could be more than twice the limit imposed by the European Union. GDP is calculated by the total value of goods and services produced domestically. It takes into account the income of working residents and citizens and consumer spending. Overall, it indicates the health of the national economy. France may implement emergency measures to reduce its deficit by increasing taxes. The government may also reduce spending on public services. Image credit: French National Assembly

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