Economic strength keeps French fiscal reform on track

Positive fiscal data have been something of a rarity in France in recent years, so President Emmanuel Macron will have welcomed the news earlier this week that the French budget deficit for 2017 was smaller than the Government had forecast. This largely reflected the renewed vigour of the economy, which ended last year on a stronger note than previous estimates suggested. The healthy pace of economic growth should help the French Government to reduce the budget deficit further over the coming years. Overall, this implies that France will exit the EC’s Excessive Deficit Procedure this year, giving President Macron greater credibility in his calls for deeper euro-zone integration and a euro-zone budget.