France is facing a “very serious” budget situation, according to Prime Minister Michel Barnier. The country has been placed under formal procedure for breaching EU budget rules, and the Bank of France has warned that a projected return to EU deficit rules by 2027 is not realistic. The French public sector deficit is expected to reach 5.6 percent of GDP this year, surpassing the EU’s three percent deficit ceiling.
Barnier emphasized the gravity of the situation, stating that it requires more than just nice statements – responsible action is needed. As the new prime minister, Barnier is set to present the 2025 budget to parliament next month, marking a critical test for the incoming administration.
With more information needed to assess the precise reality of France’s public finances, the government faces tough decisions ahead to address the concerning budget deficit. The French public will be watching closely as the country navigates its financial challenges under the leadership of Prime Minister Barnier.