France Targets Inflation Control in 2025 Budget Amid Spending Cuts

The French government is focusing on controlling inflation at 1.4% for the year and aims to reduce public spending by 30 to 32 billion euros in the 2025 budget. Efforts are underway to secure parliamentary approval by January's end, with discussions open on pension reforms.

The French government is setting its sights on managing inflation at 1.4% this year, according to Budget Minister Amelie de Montchalin. Capitalizing on this goal, the administration plans to cut public spending between 30 billion euros and 32 billion euros for the 2025 budget.

In a televised statement on TF1, Montchalin expressed intentions to finalize a parliamentary agreement on the 2025 budget by late January. On Tuesday, Prime Minister Francois Bayrou also suggested potential renegotiations on the contentious pension reform to garner support from left-wing lawmakers crucial for budget approval.

Preliminary data from the INSEE statistics agency showed France's consumer price index (CPI) inflation was 1.3% through December, maintaining the rate reported in November. These figures highlight ongoing economic challenges as the government aims for fiscal discipline and stability.

(With inputs from agencies.)