PARIS (Reuters) – France’s plan to lower its budget deficit to 4.6% of economic output in 2026 from 5.4% this year implies finding 40 billion euros ($45.4 billion) of savings, finance minister Eric Lombard said on Sunday.
“I am sticking to the target of 4.6% for 2026, which will require an extra and very considerable effort worth 40 billion euros,” Lombard told BFM TV.
“We are in a state of emergency, regarding our budget,” he added.
France, the euro zone’s second-biggest economy, is targeting a gradual reduction in its budget deficit in order to meet EU rules.
As a first step, it wants to trim the deficit to 5.4% of economic output this year from 5.8% last year, with a view to bringing the shortfall in line with an EU ceiling of 3% by 2029.
France cut its 2025 economic growth forecast to 0.7% from 0.9% on Wednesday, reflecting uncertainty from the global trade war caused by U.S. President Donald Trump’s tariffs.
($1 = 0.8803 euros)
(Reporting by Sudip Kar-Gupta and Bertrand Boucey; Editing by Kirsten Donovan)
