Headlines
EU's Dombrovskis says suspension of French pension reform costly, but to be offset
Published by Global Banking and Finance Review
Posted on October 16, 2025
Global Banking and Finance Review
Company
Global Banking and Finance Review is an online platform offering news, analysis, and opinion on the latest trends, developments, and innovations in the banking and finance industry worldwide. The platform covers a diverse range of topics, including banking, insurance, investment, wealth management, fintech, and regulatory issues. The website publishes news, press releases, opinion and advertorials on various financial organizations, products and services which are commissioned from various Companies, Organizations, PR agencies, Bloggers etc. These commissioned articles are commercial in nature. This is not to be considered as financial advice and should be considered only for information purposes. It does not reflect the views or opinion of our website and is not to be considered an endorsement or a recommendation. We cannot guarantee the accuracy or applicability of any information provided with respect to your individual or personal circumstances. Please seek Professional advice from a qualified professional before making any financial decisions. We link to various third-party websites, affiliate sales networks, and to our advertising partners websites. When you view or click on certain links available on our articles, our partners may compensate us for displaying the content to you or make a purchase or fill a form. This will not incur any additional charges to you. To make things simpler for you to identity or distinguish advertised or sponsored articles or links, you may consider all articles or links hosted on our site as a commercial article placement. We will not be responsible for any loss you may suffer as a result of any omission or inaccuracy on the website.
Published by Global Banking and Finance Review
Posted on October 16, 2025
WASHINGTON (Reuters) -France appears to be on track with its 2025 budget gap reduction, and while the suspension of its pension reform will be costly, it should be offset by other measures to keep consolidation as agreed with the European Union, the EU's top economic official said on Thursday.
Speaking to Reuters on the sidelines of the International Monetary Fund meetings in Washington, European Economic Commissioner Valdis Dombrovskis said the 2026 French budget, presented by Prime Minister Sebastien Lecornu earlier this week, must be in line with France's medium-term plan agreed with Brussels.
"We note the decision to suspend the pension reform and it's also acknowledged by the French government itself that it comes with a sizable fiscal cost," Dombrovskis said.
"But at the same time, there were also indications from the government that they will be then providing measures to offset this negative fiscal impact," he said.
"Our message is that it's important that next year's budget, which France is supplying, is in line with its medium-term fiscal structural plan, which is important to ensure long-term debt sustainability and financial stability," he said.
"As regards this year, the indications so far are actually more positive. In spring, we are expecting some deviations from the fiscal targets, but it may well be that at the end of the day France will be on track with its fiscal target for this year," Dombrovskis said.
France expects a budget deficit of 5.4% of GDP in 2025, down from 5.8% in 2024.
(Reporting by Jan Strupczewski; Editing by Paul Simao)