France’s government has formally confirmed that the public deficit will reach 5.4% of gross domestic product in 2026, rather than the 5% target set for the year. The revised forecast appears in the end-of-year finance bill presented to the Council of Ministers on Wednesday, November 4.
The bill updates public finance projections and makes budget adjustments. Finance Minister Roland Lescure said that bringing the deficit down to 5% in 2026, after 5.1% in 2025, would be difficult. He described 2026 as a difficult year.
The state budget balance is expected to show a deficit of €135.5 billion in 2026, compared with €124.2 billion in 2025 and an initial 2026 forecast of €134.5 billion. The deterioration is partly attributed to general budget spending running €2.5 billion above initial projections, including higher debt-service costs and spending linked to crises, particularly the response to the energy crisis.
The government has also highlighted its ability to control spending while responding to crises.
Sources: Le Monde Économie.