France in €14bn tax shortfall as forecasts prove wildly off-base

France's Court of Auditors (La Cour des comptes) reported on the 28 May 2014 that the French government was facing a €14bn shortfall in its public finances after overestimating a projected increase in tax revenues for the last financial year by almost half.

On the 2 June 2014, the European Commission announced that France would miss its debt targets in 2014 and 2015 because it had failed to curb spending on healthcare and pensions and increased corporate taxes, which stalled growth and jobs.

Further, the French Court of Auditors warned on the 17 June 2014 in a report that France might fall short of its 2014 deficit target of 3.8% by 0.2 percentage points.

• Primary Source

ESO: Background information: New French premier vows massive tax cuts in bid to turn economy around http://www.europeansources.info/record/new-french-premier-vows-massive-tax-cuts-in-bid-to-turn-economy-around/

Website: Cour des comptes http://www.ccomptes.fr/

Cour des Comptes: News, 28.05.14: Le budget de l’État en 2013 (résultats et gestion) http://www.ccomptes.fr/Actualites/A-la-une/Le-budget-de-l-Etat-en-2013-resultats-et-gestion

EurActiv, 02.06.14: Hollande’s taxes blamed for France’s failure on Commission debt targets http://www.euractiv.com/sections/euro-finance/hollandes-taxes-blamed-frances-failure-commission-debt-targets-302546

EUObserver, 02.06.14: EU warns France on budget efforts http://euobserver.com/news/124442

ESO: Background information: Building growth: Country-specific recommendations 2014 http://www.europeansources.info/record/press-release-building-growth-country-specific-recommendations-2014/

EUObserver, 03.06.14: France falls victim to EU's economic powers http://euobserver.com/news/124443

Le Télégramme, 18.06.14: Valls must not give in (via Euro|Topics) http://www.eurotopics.net/en/home/presseschau/archiv/aehnliche/archiv_article/ARTICLE145337-Valls-must-not-give-in

---