France’s 2020 draft budget: A tightrope walker exercise

Key points: The current economic and political scenario has been a n important factor in the development of the 2020 budget: the yellow vests and the outcome of the Grand Débat have led the government to a more demand-driven policy that values tax cuts in favour of households. On the other hand, a resilient growth foreseen in 2019 and 2020 (by 1.4% and 1.3% respectively according to the government) confirms the government’s strategy for sustainable public spending, which is expected to decline from 2020 on. ***