France Aims for Fiscal Reform: Public Spending Cuts and Inflation Targets

French budget minister Amelie de Montchalin announced plans to target 1.4% inflation and cut public spending by 30-32 billion euros in 2025. This comes amid efforts by PM Francois Bayrou to renegotiate pension reforms to secure left-wing support for passing the budget in parliament by January's end.

In a move aimed at tempering France's economic turbulence, Budget Minister Amelie de Montchalin announced ambitions for a 1.4% inflation target this year. She outlined a strategy involving significant cuts to public spending, aiming to save between 30 billion and 32 billion euros in the 2025 budget.

Montchalin expressed confidence in securing parliamentary approval for the government's fiscal plan by the end of January, hoping to bridge partisan divides. Meanwhile, French Prime Minister Francois Bayrou revealed a willingness to revisit the contentious pension reform, an olive branch to sway left-wing lawmakers crucial to passing the budget.

The government's fiscal maneuvers reflect its broader strategy to stabilize the economy amid currency fluctuations, where 1 USD is equivalent to 0.9713 euros. The outcome of these deliberations will bear heavily on France's economic landscape.

(With inputs from agencies.)