French President Emmanuel Macron attends a meeting at the Elysee Palace in Paris, France, May 23, 2017. "But that does not prevent us from sticking to our commitments on reducing taxes while reining in public spending and debt," he added.The slower growth outlook raises the chances that when the government produces its 2019 budget at the end of September it may need to change its public deficit target, previously pegged at 2.3 percent of economic output.However, business daily Les Echos reported that the government could be aiming at a deficit close to 2.6 percent this year -- the same as in 2017 -- and as much as 3 percent next year. "Sure, it's a higher than expected number, but choices had to be made," Les Echos quoted an unnamed government source as saying.FISCAL SQUEEZEThe government has been under pressure from Brussels and the International Monetary Fund to detail plans to rein in public spending. France is among the global frontrunners in the spending stakes.Philippe said the government is particularly keen on reducing spending on what he described as ineffective policies such as housing or subsidised jobs.He said that housing allowances, family welfare benefits and pension payouts would increase by only 0.3 percent in 2019 and 2020. "This is going to be a real bloodbath for the state and the public services," far-left leader Jean-Luc Melenchon told reporters in response to Philippe's comments.

Source: Egypt Today August 26, 2018 20:48 UTC