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France Orders €5B Cuts to Hold Deficit as Debt Hits 114% of GDP

Prime Minister Bayrou will present a mid-July roadmap for 2026 budget savings to align with EU fiscal limits.

Les ministres Catherine Vautrin, Eric Lombard, Amélie de Montchalin et François Rebsamen ont donné conférence de presse à Paris, le 26 juin.
Le Premier président de la Cour des comptes Pierre Moscovici, le 8 avril 2025 à Paris
Depuis cinq décennies, la dette publique française suit une trajectoire ascendante quasi ininterrompue.
L’Insee dira jeudi si la dette colossale de la France, qui dépasse 3,300 milliards d’euros, a encore gonflé au premier trimestre, en pleines turbulences politiques pour le pays

Overview

  • Public debt rose by €40.5 billion in Q1 to €3,345.8 billion, representing 114% of GDP.
  • The government ordered a €5 billion spending freeze this summer, including €1.7 billion in social outlay cuts and suspension of €3 billion in state credits, to cap the 2025 deficit at 5.4% of GDP.
  • Prime Minister Bayrou will unveil a mid-July plan to identify around €40 billion in savings for the 2026 budget without raising taxes.
  • A second fiscal alert committee convened on June 26 to assess risks and approve spending adjustments across state, social security and local authorities.
  • Low growth forecasts of 0.6–0.7% and rising interest costs—from €35 billion in 2018 to €58 billion in 2024—intensify pressure to meet EU deficit rules and avoid parliamentary censure.