France is entering an era of belt-tightening, as the wars in Ukraine and Gaza, economic slowdowns in Germany and China and record-high interest rates take a bigger-than-expected toll on growth.
The French will find themselves faced with cuts of 10 billion euros ($10.8 billion) in government spending, on items including environmental subsidies and education, the government announced Thursday, on top of €16 billion in cuts announced a few months ago. The finance minister, Bruno Le Maire, on Monday revised the forecast for economic growth this year to 1 percent, down from 1.4 percent at the end of last year.
“Lower growth means lower tax receipts, so the government must spend less,” Mr. Le Maire said at a news briefing.
After spending lavishly during the pandemic to support the economy and shield consumers from high energy prices, France is now at risk of breaching European Union…
