France may sell real estate, review seniors’ unemployment benefits to cut deficit

Published: Updated:
Read Mode
100% Font Size
3 min read

France wants to reduce government spending on office space and may consider real estate sales in a bid to reduce the state deficit, the budget and finance ministers said in a media interview on Sunday.

The government also plans to review unemployment benefits for seniors, they said.

For the latest headlines, follow our Google News channel online or via the app.

Budget Minister Thomas Cazenave told La Tribune that the government wants to reduce the amount of office space occupied by the administration by 25 percent.

“There is real leverage for savings there, in particular given the new ways of working,” he said, referring to the increase in home working following the COVID-19 pandemic.

He said the ratio of office space area per civil servant is 24 square meters (258 square feet), far above private industry standards, and the government wants to reduce that to 16 square meters.

“We may also consider real estate sales,” he added.

Asked about whether the government could achieve its target of reducing the unemployment rate from 7 percent to 5 percent by 2027, Finance Minister Bruno Le Maire said this would require reviewing social policies, notably unemployment benefits.

“We have worked hard to move from 9 percent to 7 percent, but to move to 5 percent, courageous choices need to be made... All the schemes that feed seniors’ unemployment must be reviewed,” Le Maire said.

Cazenave also confirmed that the government will seek an additional 12 billion euros of spending cuts for the 2025 budget, as discussed with Prime Minister Elisabeth Borne on Thursday.

“We confirm spending cut targets of 16 billion euros ($17.5 billion) for the 2024 budget, and we are already preparing 12 billion of savings for the 2025 budget,” he said, adding that the government was still aiming to reduce its deficits to 4.4 percent of GDP in 2024 and 3.7 percent in 2025.

Read more:

France will struggle to meet deficit target: IMF

UK Finance Minister Jeremy Hunt unveils new free childcare policy

Macron is pushing Europe into $900 bln trade fight with China

Top Content Trending