Overview

• The French government has committed to maintaining a deficit target of 5.4% of GDP in 2025 and 4.6% in 2026, with a long-term goal of reducing it below 3% by 2029.
• An additional fiscal effort of 40-50 billion euros is required for the 2026 budget, primarily through spending cuts and efficiency measures.
• Economic growth forecasts for 2025 have been revised downward to 0.7%, reflecting global trade tensions and economic uncertainty.
• François Bayrou will lead a public finance conference on Tuesday to address long-standing fiscal imbalances and outline risks tied to the 2026 budget.
• The government has ruled out tax increases for middle classes and businesses, emphasizing expenditure reductions to achieve fiscal targets.