France is on route to overpass the European Union’s budget deficit limit next year without new cuts on the budget after French President Emmanuel Macron acceded to anti-government street protests.

Macron announced wage increase for the poor workers and a tax cut for most pensioners to alleviate displeasure, leaving his government jostling to come up with extra budget savings or face the risk of blowing

through the EU’s 3% of GDP mark. On 11th December, France Prime Minister Edouard Philippe was expected to speak in the parliament by detailing the ways the steps will be financed in a revision of the budget weeks before it comes into force. An economist in a research note specified that under all possibility, the 2019 public deficit will record above the 3.0% yardstick. However, the loss was improbable to strike 3.5% as the government would be looking forward to negate the extra burden on the budget. Any failure to regard the EU loss benchmark might crush France’s fiscal integrity with its European partners after defying it for ten years before Macron took oath. Similarly, any sign of mercy, could muddle the Commission’s previously tense conversation with Rome about keeping its shortage down. The situation in France would be serving the purpose of the Italy. Moreover, the allowance which Macros offered to the protesters is putting pressure on the French bond yields; whereas the cap for the German yields increasing to a topmost level since May 2017. The measures declared by Macron on 10th December would be putting an 8-10 billion euro ($9.1-11.4 billion) gap in the budget, besides the 4 billion euros already lost since Macron canceled hikes to fuel taxes during the first wave of concessions. For the original 2019 budget, the government earmarked a public deficit of 2.8 % of GDP. It was based on a growth estimate of 1.7 % that currently looks growingly promising while the economy slows despite the protests. However, the 2019 deficit would have been only 1.9% without the long-planned one-off impact of a payroll tax rebate scheme becoming a permanent tax cut at a cost of 20 billion euros.