France Warned of Fiscal Crisis as Public Spending Spirals

The Cour des Comptes highlights unsustainable deficits and demands urgent reforms to prevent economic divergence from EU partners.

The Cour des Comptes has issued a critical report on France's public finances, warning of uncontrolled spending and rising deficits over the past two years.
France's public deficit reached 6% of GDP in 2024, with projections for 2025 at 5.4%, far from the EU's 3% target, which is now delayed until 2029.
The report criticizes reliance on temporary tax hikes rather than structural spending reforms, with core public expenditure continuing to grow at pre-crisis rates.
Failure to meet deficit reduction targets could result in France falling behind its European partners and facing long-term financial instability.
Debt levels are projected to exceed 125% of GDP by 2029, with debt servicing costs potentially doubling, surpassing all other state budget allocations.