New Delhi

In a bid to curb the state deficit, France is contemplating the sale of real estate and reducing government spending on office space, according to statements by Budget Minister Thomas Cazenave on Sunday.

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According to Reuters, Cazenave emphasised the potential for savings in office space, suggesting a 25 per cent reduction in administrative space and possible real estate sales. He highlighted the excess ratio of office space per civil servant compared to private industry standards.

This move aligns with the evolving work landscape post-COVID-19, with increased remote work. Additionally, Finance Minister Bruno Le Maire acknowledged the need for courageous choices, especially in reviewing unemployment benefits for seniors, to achieve the ambitious target of reducing the unemployment rate to 5 per cent by 2027.

Reuters cited Finance Minister Bruno Le Maire, who spoke on the necessity of revisiting social policies to achieve the government's goal of lowering the unemployment rate to 5 per cent by 2027. Le Maire specifically pointed to the need for bold decisions regarding schemes related to seniors' unemployment benefits.

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This statement follows the government's efforts in reducing the unemployment rate from 9 per cent to 7 per cent. The proposed changes aim to address structural issues and ensure sustained economic recovery.

In response to Prime Minister Elisabeth Borne's discussions on Thursday, Budget Minister Thomas Cazenave confirmed that the government is pursuing an additional 12 billion euros in spending cuts for the 2025 budget. The overall objective is to trim spending by 16 billion euros for the 2024 budget and an additional 12 billion euros for the 2025 budget.

Cazenave emphasised the government's commitment to reducing deficits, targeting 4.4 per cent of GDP in 2024 and further lowering it to 3.7 per cent in 2025.

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(With inputs from Reuters)

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