France revises its progress forecast for 2025 downwards | EUROtoday

“Given uncertainties”the federal government revised the expansion of France’s progress for 2025 on Wednesday, April 9, the Minister of the Economy, a couple of minutes after a brand new announcement from Donald Trump on Wednesday, April 9 on a customs duties for eighty days.

During the presentation of the 2025 finances, the federal government had toured up on progress of 0.9 %, stated Eric Lombard on TF1. “We decided to [la] Bring back to 0.7 % given the uncertainties – and we have just seen an element today. The 0.7 % is what will be presented in the Council of Ministers next week ”he said. The Banque de France had already revised its growth forecast for 2025, in March, at 0.7 %, and the French Observatory for Economic Conditions (OFCE) brought its 0.5 % on Wednesday.

Asked about a possible new revision down this rate in the future, the Minister replied that this “Depends[rait] Negotiations that can have interaction with America and choices which are taken on customs duties ”. “If we manage to lower customs duties, we can even have better, and if not, we will see”he added.

He once more undertook to not improve taxes in 2025, “Even if there is less growth”as a result of “” [le gouvernement tient] the axis of public spending as they have been voted by parliament ”. “We will do neither more, because we must hold the objective of reducing the deficit, no less, because we do not want to aggravate the situation”he argued. Erice Lombard added, for 2026: “We have already stated that we weren’t going to resume the surcharge on massive firms. For the remainder, the topic is totally open. »»

As for firms in issue because of the extra customs duties imposed by the United States, for which sure nations have introduced support, the Minister repeated that they might be “Accompanied”however that “The time of” no matter it prices ” [était] finished since the budgetary situation does not allow it[tait] not “.

“A complicated game”

About the successive bulletins of Donald Trump on customs duties, the Minister of the Economy stated that“A complicated game” had been “Anticipated, with a very strong announcement and negotiations which we had always been told that they would start in Washington during G7 meetings on April 22”.

But a couple of minutes earlier than Mr. Lombard’s interview, the American president introduced that he suspended from all nations for 3 months imposed on all nations, aside from China, recognizing that these measures “Frightened a little”. For merchandise from China, quite the opposite, customs duties will additional improve, he stated, whereas predicting “An agreement” Next with the massive financial rival of the United States.

This reversal is available in full monetary tumult on the earth. After a number of curler coaster periods of the fairness markets, the American debt itself was heckled on Wednesday. Wednesday night, the governor of the Banque de France, François Villeroy de Galhau, praised a one on France 2 “Beginning of return to economic reason”after Trump’s turnaround, whereas warning in opposition to the “Great unpredictability” American coverage.

An unpredictability which “Play against confidence and growth, first in the United States”in response to the governor. “It turns out that, tonight, she plays in the right direction and that we have less bad news”with customs duties that don’t disappear however that are lowered to 10 % for 3 months.

The commerce battle would straight have an effect on the expansion of the euro zone as much as 0.25 factors in 2025, France being much less uncovered than Germany or Italy, in response to the Banque de France. Italy, it, divided by two its progress forecast for 2025, at 0.6 %, resulting from American customs duties, she introduced earlier within the day.