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French president Emmanuel Macron gestures towards his dog Nemo during a meeting with German Vice Chancellor and German Foreign Minister at the Elysee Palace in Paris, France, August 30, 2017. REUTERS/Alain Jocard/Pool


PARIS (Reuters) - French President Emmanuel Macron on Wednesday said that more cuts to popular housing benefits for households could be on the cards as part of a wider reform of France's costly housing policy and a drive to cut public spending.

Asked by Le Point magazine in an interview if he envisaged to cut the widely enjoyed housing allowance further than the amount announced over the summer, Macron said:

"Yes, but only as part of a deep transformation which must lead to a drop in rents and as part of a wider policy."

Analysts said the cut in housing allowance by five euros ($6) per month announced by Macron's government over the summer had contributed to a sharp slump in the 39-year old president's popularity ratings.

(Reporting by Michel Rose; Editing by Ingrid Melander)

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