Overview

• The French government has announced the need for €40-50 billion in spending cuts to meet its 2026 deficit target of 4.6% of GDP, as confirmed by Economy Minister Éric Lombard.
• Prime Minister François Bayrou will convene a conference on April 15 to address the 'pathologies' of France's public finances and outline the fiscal challenges ahead.
• Government officials have reiterated their commitment to avoiding tax increases for middle-income earners and businesses, focusing instead on internal savings and potential growth-driven revenue increases.
• The downgraded economic growth forecast for 2025, now set at 0.7%, adds further pressure to the fiscal strategy amid global trade uncertainties and domestic economic strain.
• Opposition leader Jean-Luc Mélenchon condemned the austerity measures, comparing them to Greece's 2010 crisis, and called for public mobilization against the proposed cuts.