France's public debt hits new high
France’s public debt has risen to close to 83 percent of the country’s GDP, France's statistics body says, one day after the government announced cuts in spending to reign in overspending.
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The growth rate of the French economy is to reach 1.6 percent as internal demand is set to compensate a US economy slowdown.
Public debt which includes state, social security and local authority, has risen to 1.6 trillion euros over the second semester due state and social security debt, France's Insee reports.
French local authorities however have been frugal over the past year, reimbursing 2.6 billion euros worth of debts.
The growth rate is critical at the moment because the government is forecasting its revenues and spending for next year, even as it struggles to contain exploding public deficits.
The European Union has laid down a 60-percent limit on public debt and a three-percent limit on public deficits.
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