France's 2017 deficit could be above EU limit for 10th year

MarketsAssociated Press

France's national audit office says the country's budget deficit could stand above the EU limit of 3 percent for the 10th consecutive year in 2017.

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In a report published Thursday, the Court of Auditors points to "insincerity" in the budget prepared last year by the previous government of Socialist president Francois Hollande.

It said that "the forecast of revenues appear overestimated and the expenses clearly underestimated."

The audit office estimates the deficit could reach 3.2 percent this year, instead of the forecast of 2.8 percent.

The government of newly-elected president Emmanuel Macron is expected to announce budget cuts to correct the situation. Finance Minister Bruno Le Maire ruled out any tax rise earlier this week.