France’s government maintained its forecast that the public deficit will reach 5.4% of gross domestic product in 2026. The estimate appears in the end-of-management finance bill approved by the Council of Ministers on Wednesday, November 4, and sent to Parliament.
The forecast marks a deterioration from the 4.7% target initially set and the 5% projected in the finance law. It also remains well above the 3% ceiling set by European rules.
The High Council of Public Finances said the government’s projection had been exposed to risks for several weeks and was further weakened by recent developments. Economic activity dipped slightly in the third quarter instead of rebounding as expected, while rising oil prices contributed to persistent inflation.
The government’s latest budget measures include cancelling €3.8 billion in credits while providing for €3.7 billion in additional spending. The finance ministry’s 5.4% deficit forecast could prove optimistic, according to concerns raised in the report.
Sources: Le Monde Politique.