Finance
French deficit target in reach, but new spending cuts needed, ministry says
Published by Global Banking & Finance Review®
Posted on June 26, 2025
1 min readLast updated: January 23, 2026
Global Banking & Finance Review®
Company
Published by Global Banking & Finance Review®
Posted on June 26, 2025
1 min readLast updated: January 23, 2026
France aims to reduce its budget deficit to 5.4% of GDP by 2025, requiring an additional €5 billion in cuts, according to the Finance Ministry.
PARIS (Reuters) -The French government's 2025 budget deficit target is still in reach, but cost overruns mean that an extra 5 billion euros ($5.9 billion) in spending cuts is needed to get there, the Finance Ministry said on Thursday.
The government aims to cut the public sector budget deficit to 5.4% of GDP from 5.8% last year, when spending spiralled out of control and tax income fell short of exceptions.
"The diagnosis is clear, and so are the decisions: meeting the public deficit target of 5.4% of GDP in 2025 remains achievable, but subject to an additional effort of 5 billion euros on spending," the ministry said in a statement.
Next month Prime Minister Francois Bayrou is preparing to outline 40 billion euros in new spending cuts in next year's budget.
($1 = 0.8520 euros)
(Reporting by Leigh Thomas;Editing by Sudip Kar-Gupta, William Maclean)
The French government's budget deficit target for 2025 is set at 5.4% of GDP.
An additional 5 billion euros in spending cuts is needed to meet the budget deficit target.
Last year, the public sector budget deficit was 5.8% of GDP.
Prime Minister Francois Bayrou is preparing to outline 40 billion euros in new spending cuts.
The budget deficit last year was attributed to spiraling spending and tax income falling short of expectations.
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