France government plans cutting about 15,000 public jobs by 2020, including 4,500 jobs next year, Prime Minister Eduard Philippe said in an interview with Le Journal de Dimanche.
The national budget of France for 2019 will be based on the forecast of 1.7% GDP growth, in contrast to the previous estimates of 1.9%.
In this regard, the French premier admitted, Paris plans to cut budget expenditures in order not to violate the standards of the European Union, which regulate the deficit of the state budget for its member countries. The maximum permissible budget deficit is 3% of GDP.
“We stand by our policy to transform [France] and rein in spending, while bolstering spending that will support economic activity,” Philippe said.
Among the specific measures reported by the minister are the reduction of 4,500 civil servants’ jobs in 2019 and another 10,000 in 2020. In addition, pensions, as well as family and housing benefits will no longer be pegged to inflation, that is, they will grow more slowly. These measures have been criticized both by the left and right parties in France as favouring the wealthy.