Overview

• Unédic forecasts a 300 million euro deficit in 2025, worsening its February projection by 100 million.
• Total debt is set to hit 59.8 billion euros, with 18.1 billion linked to emergency COVID-19 support.
• State withdrawals amounting to 12.05 billion euros between 2023 and 2026 have effectively stalled the fund’s debt reduction.
• Officials warn that these financial pressures weaken Unédic’s ability to absorb future economic shocks.
• With GDP growth seen at just 0.6 percent in 2025, benefit recipients are expected to fall from 2.7 million at end-2024 to 2.5 million by 2027 despite a rise in the unemployment rate to around 7.6 percent by mid-2025.