French Government Unveils Plan to Curb Budget Deficit Mismanagement

The initiative introduces new oversight committees and transparency measures following significant fiscal shortfalls in 2023 and 2024.

The government has announced the creation of a 'comité d'alerte,' which will meet three times annually to monitor state, social, and local spending and recommend corrective measures.
A new 'cercle des prévisionnistes' will evaluate the accuracy of macroeconomic forecasts and improve fiscal planning methodologies.
The plan seeks to address recent deficits, which exceeded projections by 1.6 percentage points in 2023 and 2024, leading to a negative outlook from Standard & Poor’s credit rating agency.
Bercy aims to enhance public trust by increasing transparency, including through a national initiative called 'Notre nation, nos finances' to engage citizens in budget discussions.
The initiative includes improved forecasting tools for corporate taxes, local government expenditures, and VAT refunds, with audits planned to rectify past misestimations.