France’s government has announced a series of budget cuts of €10 billion in an attempt to curb its budget deficit after growth failed to meet forecasts.

The latest round of cuts includes €2 billion that was due to be allocated to environmental and energy transition programs.

In addition, Zawya reports that other cuts are being made to spending that had been previously budgeted on education, justice, defence, and regional development.

The decree was published in the country’s official journal and signed by Prime Minister Gabriel Attal, who was recently appointed by President Emmanuel Macron during a cabinet reshuffle.

The government has previously cautioned about the cuts to hold the deficit for this year to 4.4% of GDP after downwardly revising its growth forecast to 1% due to global tensions and economic slowdown in key trading partners, including China and Germany.

Furthermore, the government has signalled concerns of French debt being downgraded by international rating agencies. 

The new budget cuts unveiled on Thursday are in addition to €16 billion in reduced spending already included in this year’s budget, predominantly a result of the energy subsidies being phased out that were implemented when gas and electricity costs skyrocketed following Russia’s invasion of Ukraine.

Moreover, sources within the country’s finance ministry have also cautioned that the deficit for last year may have exceeded its target of 4.9% of GDP.