France‘s new prime minister lowered his growth forecast for 2025 from 1.1% to 0.9%, saying the government will focus on bringing the public budget deficit to 5.4% of GDP.
Francois Bayrou emphasized that they will take a strategic approach to economic stability and are determined to reach the European Union’s target of reducing France’s budget deficit to 3% of its GDP by 2029.
Noting that all political parties that have taken part in the government so far are responsible for the increase in France’s public debt, Bayrou said that France has never borrowed this much. This debt is “the sword of Damocles,” he added.
According to the French government, the public budget deficit was estimated at 6.1% in 2024.
The budget deficit targeted in the country this year, as in 2024, is well above the EU target.
France was also warned by the EU’s administration about the budget deficit.