French Finance Minister Bruno Le Maire set out the government’s key economic policy aims for the year on Thursday, centered around controlling inflation, boosting green industry and restoring public finances.
(Bloomberg) — French Finance Minister Bruno Le Maire set out the government’s key economic policy aims for the year on Thursday, centered around controlling inflation, boosting green industry and restoring public finances.
In a New Year’s address to business leaders in Paris, the minister said he expected the economy to grow again in 2023 despite the challenges of the energy crisis and rising prices.
“The conditions are in place for inflation to stabilize and then slow during 2023,” Le Maire said.
He pointed to initial declines in sea freight rates and wholesale prices for raw materials, which should feed through to consumers. He added that Electricite de France SA was on track to raise power output to 45 gigawatts in January as it brings nuclear reactors back into service following maintenance.
French inflation unexpectedly slowed in December to 6.7%, led by energy and services. Statistics agency Insee has said it expects it to increase in the first two months of the year, however, as the government adjusts energy price caps in January and February to allow for a 15% increase in household bills.
Le Maire said other challenges facing the country include:
- Building independence for strategic industries, including medicines, electric batteries, chips, energy, hydrogen and data
- He said the government is committed to “green industrialization” that is “fast, massive, planned”
- Restoring public finances, and sticking to a commitment not to raise taxes or create additional debt
- He said the government would carry out comprehensive spending reviews every year, with conclusions delivered by April 1
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