Overview

• The French government has announced an additional €40 billion in spending cuts for the 2026 budget to reduce the public deficit to 4.6% of GDP.
• Prime Minister François Bayrou and Economy Minister Éric Lombard emphasize that the austerity measures will focus on spending cuts rather than increasing taxes on the middle class or businesses.
• A national conference on public finances, set to begin on April 15, will involve ministers, parliamentarians, and local authorities to address long-standing fiscal imbalances.
• Opposition parties, including RN and LFI, have signaled potential motions of censure if the cuts adversely affect essential public services such as education and healthcare.
• The austerity measures come as France's economic growth forecast for 2025 has been downgraded to 0.7%, further complicating efforts to stabilize public finances.