Research Briefing | Oct 19, 2021

Eurozone | 2022 French deficit at least €40bn wider than budget

Eurozone | 2022 French deficit at least €40bn wider than budget

We estimate France’s fiscal deficit in 2022 will be around €40bn wider than projected by the government in its draft budget, at 6.3% of GDP versus the official 4.8% target. This is due to additional fiscal support measures, the cost of the France 2030 investment plan, and differences in baseline assumptions.

What you will learn:

  • The additional fiscal easing will help smoothing the impact from the surge in energy prices.
  • Our projection for public debt is higher than government estimates, with GDP peaking in 2024.
  • However, the deficit gap could end up even wider in 2022, particularly if energy prices rise more than the government expects.

Back to Resource Hub

Related Services

Industrial property

Post

US: High debt costs suggest an industrial correction

The scale of the increases in debt costs, coupled with the low-yielding environment makes some repricing highly likely for gateway US industrial markets over the coming quarters.

Find Out More
Office building in London

Post

High debt costs suggest European office price correction

Our analysis suggests a 10% correction is needed on average for the major office markets in Europe to compensate for the higher cost of debt, with prime yields required to soften by 10bps-75bps to generate a low-risk interest coverage ratio at a reasonable LTV.

Find Out More