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France's 2026 deficit target implies 40 billion euros of savings, minister says
Published by Global Banking & Finance Review®
Posted on April 13, 2025
1 min readLast updated: January 24, 2026
Global Banking & Finance Review®
Company
Published by Global Banking & Finance Review®
Posted on April 13, 2025
1 min readLast updated: January 24, 2026
France aims to cut its budget deficit to 4.6% by 2026, requiring 40 billion euros in savings, as part of efforts to comply with EU rules.
PARIS (Reuters) - France's plan to lower its budget deficit to 4.6% of economic output in 2026 from 5.4% this year implies finding 40 billion euros ($45.4 billion) of savings, finance minister Eric Lombard said on Sunday.
"I am sticking to the target of 4.6% for 2026, which will require an extra and very considerable effort worth 40 billion euros," Lombard told BFM TV.
"We are in a state of emergency, regarding our budget," he added.
France, the euro zone's second-biggest economy, is targeting a gradual reduction in its budget deficit in order to meet EU rules.
As a first step, it wants to trim the deficit to 5.4% of economic output this year from 5.8% last year, with a view to bringing the shortfall in line with an EU ceiling of 3% by 2029.
France cut its 2025 economic growth forecast to 0.7% from 0.9% on Wednesday, reflecting uncertainty from the global trade war caused by U.S. President Donald Trump's tariffs.
($1 = 0.8803 euros)
(Reporting by Sudip Kar-Gupta and Bertrand Boucey; Editing by Kirsten Donovan)
The main topic is France's plan to reduce its budget deficit to 4.6% by 2026, requiring significant savings.
France needs to find 40 billion euros in savings to achieve the 2026 deficit target.
France aims to align its budget deficit with the EU ceiling of 3% by 2029.
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