Overview

• Economy Minister Eric Lombard announced that an additional €40 billion effort is required to meet the 2026 deficit target of 4.6% of GDP.
• The government plans to achieve this through significant spending cuts and boosting revenue via economic growth, while ruling out new tax hikes.
• For 2025, the government remains committed to a 5.4% deficit target, emphasizing its importance for market credibility.
• Prime Minister and President have reiterated their pledge not to increase taxes as part of fiscal tightening measures.
• Concerns persist over international trade pressures, including reduced American tariffs on EU goods, which Lombard believes remain too high to alleviate economic strain.