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IMF Backs France’s €40 Billion Savings Plan, Guardianship Risk Not Imminent

Pierre-Olivier Gourinchas praised the government’s resolve across political parties to rein in debt, warning that creditors could impose conditions if reforms stall.

L'économiste en chef du Fonds monétaire international, Pierre-Olivier Gourinchas, à Washington le 23 avril 2025.
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Overview

  • IMF chief economist Pierre-Olivier Gourinchas said financial guardianship could arise if France fails to alter its debt trajectory but stressed it is not an immediate threat.
  • He deemed the plan to slash roughly €40 billion from the 2026 budget realistic and necessary to curb the national deficit.
  • Gourinchas expressed confidence that France’s leadership and political partners will carry out the proposed savings measures.
  • Public Accounts Minister Amélie de Montchalin cautioned that without decisive reforms creditors or the IMF could enforce stricter oversight.
  • France retains access to the EU’s European Stability Mechanism, which offers member states financial support under favorable conditions in case market pressures intensify.