Latest news with #budget deficit
Bloomberg
2 days ago
- Business
- Bloomberg
UK Borrows Billions More Than Expected, Bessent Calls for Fed Review
UK government borrowing came in more than forecast in June, a setback for Chancellor of the Exchequer Rachel Reeves that will fan speculation over potential tax hikes to shore up the public finances. A surge in debt-interest payments sent the budget deficit to £20.7 billion ($27.9 billion), the Office for National Statistics said on Tuesday, £6.6 billion more than a year earlier and well above the £17.5 billion economists surveyed by Bloomberg expected. Elsewhere, Treasury Secretary Scott Bessent said in a social media post Monday that there should be a review of the decision to renovate parts of the Federal Reserve headquarters in Washington. Today's guests, Marina Zavolock, Morgan Stanley Chief European Equity Strategist, Jasmine Groschl, Allianz Senior Economist, Eivind Kallevik, Norsk Hydro CEO. (Source: Bloomberg)
Bloomberg
7 days ago
- Business
- Bloomberg
Work More to Earn Less: France's New Revolution
There's been only one topic of conversation in the brasseries of France this week: Prime Minister Francois Bayrou's proposal to scrap two of three public holidays in the month of May to contain the spiraling budget deficit. In the land of the 35-hour work week, this is tantamount to treason. Most of the public seems to hate it, unions have called it a declaration of war and the far right has called it a provocation. The outrage is a little overdone. Knocking off two public holidays would leave the French with nine, which looks positively Germanic — until you add their 25 paid vacation days, which gets France in almost the same ballpark as Spain. (And no need to mention the extra days that many private-sector workers get for working more than 35 hours.) And while there's been plenty of gnashing of teeth at Bayrou's description of the month of May as 'gruyere' cheese — full of holes — it's kind of true. France is a place where the calendar is a Sudoku puzzle to find the ideal combo of holidays and vacation; this year, it's been possible to strategically place five days' vacation and get 32 days off.
Zawya
17-07-2025
- Business
- Zawya
Qatar posts $208mln second-quarter budget deficit as spending rises
Qatar posted a budget deficit of 757 million riyals ($208 million) in the second quarter of 2025, as public spending rose 5.7% from the year-earlier period, the finance ministry said on Thursday. Qatar, the world's third-largest liquefied natural gas exporter, saw revenue ease 0.1% from the same quarter of 2024, to 59.847 billion riyals. Total public spending stood at 60.604 billion riyals, with the budget based on an average oil price of $66.80 a barrel, the finance ministry said. Qatar also posted a budget deficit of 529 million riyals in the first quarter of the year, ending a 3-year run of surpluses. Like its oil-rich Gulf neighbours, Qatar is looking to diversify its economy away from hydrocarbons, but remains reliant on gas revenue for the majority of the government's income. Oil and gas accounted for 34 billion riyals of revenue in the second quarter, while non-hydrocarbon industries generated just under 26 billion riyals over the same period. ($1 = 3.6427 Qatar riyals)
Bloomberg
17-07-2025
- Business
- Bloomberg
French Central Bank Chief Praises Plan to Fix ‘Very Excessive Deficit'
The French government's contested plan to rein in the budget deficit goes in the right direction to tackle deep problems in public finances, the chief of the central bank said. 'The general orientation seems to go in the right direction to finally get control over our public debt while preserving economic growth,' Bank of France Governor Francois Villeroy de Galhau said.
CNA
15-07-2025
- Business
- CNA
France eyes holiday cuts to slash debt burden
PARIS: French Prime Minister Francois Bayrou said Tuesday (Jul 15) that he wants to reduce the number of public holidays as part of an urgent plan to tackle what he called the "curse" of the country's rising debt. Presenting his 2026 budget outline, Bayrou proposed scrapping two of France's 11 public holidays, suggesting Easter Monday and May 8, the latter marking the end of World War II in Europe. UNDER PRESSURE TO CUT DEFICIT France is under EU pressure to bring its public deficit back under control and reduce its national debt. Bayrou said France currently borrows each month to pay pensions and civil servant salaries, a situation he described as "a curse with no way out". He had previously indicated that France needed to improve its budget position by €40 billion (US$46.5 billion) in 2026. That figure has since grown, after President Emmanuel Macron called for an additional €3.5 billion in military spending next year amid rising global tensions. France's defence budget for 2025 stands at €50.5 billion. Bayrou said the government aims to cut the budget deficit from an estimated 5.4 per cent in 2025 to 4.6 per cent in 2026, and to meet the EU-mandated 3 per cent target by 2029. To meet this goal, spending increases will be frozen across all areas — including pensions and healthcare — except for debt servicing and the defence sector, Bayrou said. "We have become addicted to public spending," he said. "We are at a critical juncture in our history." GREECE AS A WARNING Bayrou cited Greece as a warning, recalling how spiralling deficits nearly forced it out of the eurozone after the 2008 financial crisis. "We must never forget the story of Greece," he warned. France's national debt is currently 114 per cent of gross domestic product, far exceeding the 60 per cent ceiling set under EU fiscal rules. Only Greece and Italy carry higher debt levels in the EU. The government plans to reduce the number of civil servants by 3,000 next year and shut down what Bayrou called 'unproductive agencies working on behalf of the state.' Bayrou also said wealthier citizens would be asked to contribute more. "The nation's effort must be equitable. We will ask little of those who have little, and more of those who have more," he said. Cutting two public holidays would generate 'several billions of euros' in additional revenue, Bayrou said. POLITICAL BACKLASH The proposal quickly drew criticism across the political spectrum. Jordan Bardella, leader of the far-right National Rally, called the move 'a direct attack on our history, our roots and on labour in France.' Jean-Luc Melenchon of the left-wing France Unbowed party demanded Bayrou's resignation, saying 'these injustices cannot be tolerated any longer.'
