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France 2018 budget bill – step in right direction but less ambitious than planned

Budget deficit to fall under 3% of GDP for first time in a decade
Macroeconomic framework is realistic, growth driven by recovering investment
Fiscal consolidation shifted from regions to central government
Structural consolidation is disappointing, at only 0.1% of GDP in 2018
Spending cuts dialled down from EUR 20bn to EUR 16bn
Tax cuts lower than planned, just below EUR 7bn
Defence, social policies and school education gain biggest spending boosts
We consider fiscal targets as realistic, but EDP exit to be difficult
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CEEMarketWatch
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