EU orders France to make £12billion in savings a year amid election chaos as more 'top executives' consider moving to Dubai and Singapore over fears a hard-left coalition will impose 90% tax rates The EU is forcing France to save over £12billion a year France is accused of breaking the bloc's deficit rules The country's riches are already considering leaving over possibly higher taxes By Perkin Amalaraj Published: 15:53, 12 July 2024 | Updated: 15:56, 12 July 2024 e-mail 35 View comments The EU has ordered France to save more than £12billion a year or face punishment for breaking fiscal rules about deficits, raising fears of even more economic and political turmoil following the election upset earlier this month. Bloomberg reported that the European Commission has told Emmanuel Macron 's government that it needs to save €15 billion a year, as it has run too high a deficit. The EU's rules state that member nations cannot have a deficit any higher than 3% of their GDP.
Earlier this year, France's statistics institute, INSEE, announced that the public deficit was 5.5% of GDP in 2023, a rise of 0.7% from 2022.
The EU's demand comes just a few months before France is set to present a medium-term monetary plan for Brussels to scrutinise. France has asked the EU for more time, seven years instead of four, but says it still plans to reach the 3% limit by 2027. The new crackdown is bad news for Macron, who already had to suffer a defeat at the hands of the leftwing New Popular Fr.