France’s young finance minister acknowledges scale of job as markets fret

France’s young finance minister acknowledges scale of job as markets fret

France’s young finance minister acknowledges scale of job as markets fret

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France’s young finance minister acknowledges scale of job as markets fret

Published 09/24/2024, 02:50 AM

Updated 09/24/2024, 04:21 AM

© Reuters. FILE PHOTO: Tourists look at the Eiffel Tower and the Paris skyline from the rooftop of the Galeries Lafayette department store on a cloudy day in Paris, France, July 1, 2024. REUTERS/Yara Nardi/File photo
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PARIS (Reuters) -France’s newly appointed finance minister, tasked with steering the nation out of a deep fiscal hole amid growing investor concern over debt, acknowledged on Tuesday concerns over his young age and lack of experience.

Antoine Armand, a 33-year-old ally of President Emmanuel Macron, was named France’s new finance minister over the weekend. On Monday, the country’s 10-year bond yield was just 1-1/2 basis points away from surpassing that of Spain’s traditionally more risky paper for the first time since late 2007.

“I understand these questions,” Armand told France Inter radio, adding: “When you’ve had government experience, you have a certain number of habits. When you haven’t got that, yes it’s new, yes it’s quite a thing.”

Teaming up with new Budget Minister Laurent Saint Martin, who is 39, Armand has the daunting task of plugging a huge hole in the budget. Previously little-known beyond Parisian political circles, the duo face pressure to figure out how to rein in France’s budget deficit as it spirals towards 6% of GDP.

“We have one of the worst deficits in our history, so the situation is serious”, Armand said. “Our hard work will match the seriousness of this situation.”

© Reuters. Newly-appointed French Economy, Finance and Industry Minister Antoine Armand leaves following the first weekly cabinet of the new government at the Elysee Palace in Paris, France, September 23, 2024. REUTERS/Sarah Meyssonnier

Asked whether the country will meet its budget deficit projection this year, Armand declined to give a clear answer, saying he was working with the budget minister on a “credible” updated estimate to be presented soon.

France’s chief auditor last week told lawmakers the finance ministry’s current forecast of a deficit at 5.1% of GDP was out of reach due to reduced tax incomes amid an economic slowdown and lower public sector savings than needed.

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Source: Investing.com

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