Calling the budget for 2026. The second largest economy of the euro area will turn out to be a “demanding” task, French economy minister Eric Lombard said Charlotte Reed from CNBC, after the legislators at the beginning of this month finally adopted the financial plan of 2025 after the expiry of turbulent, exercising government trying.
France has set a trajectory to reduce its public deficit, aimed at achieving 5.4% of the national GDP in 2025 and immersed below 3% in 2029, said Lombard. According to the principles of European Union expenditure, Member States must maintain their deficits below 3% of GDP.
“2026, yes, it is a very demanding budget, because we will continue to reduce the deficit and be below, of course below 5.4%and probably below 5%,” said the Minister of Economy CNBC on Monday, noting that The the the the the the the the The the the the Cnbc said CNBC, noting that The the CNBC said CNBC, noticing that The the Final Target was not set in stone.
“We will work with all political parties … To discuss, talk to us. We also go to cooperation with employers to achieve a consensus about the main principles that are the key to the country and the rules on which we can make corrections that will allow us to spend less in 2026 – he said.
Lack of budget and wider instability in French policy has gone to markets in recent months. Lombard awarded “a negative impact on growth”, expressing the hope that investors will come back to France now.
The country's economic results have dropped Cramp 0.1% in the fourth quarterfrom from 0.4% growth in the last three months, with the France Bank, he expected modest growth by 0.1-0.2% in the national GDP in the first quarter among the expected increases in market services and the energy sector, According to the latest monthly business survey. International Monetary Fund predicts The French economy will increase by 0.8% throughout the year 2025.
Pension reform
Now the budget has been finalized, Focus has returned to the fate of the discussion on the controversial subject – and the highly questioned pension reform in 2023, which aims to gradually raise the retirement age from 62 to 64 years.
The new Prime Minister of French Francois Bayrou signaled that legislation can return to the program – providing something like a litmus test for people observing France's efforts to limit their deficits.
“I completely trust representatives of employees and employers,” said Lombard Reed CNBC. “And so they know that their duty is to find adaptation … and they have three months for it, I am convinced that they can reach an agreement on this matter, and if they reach an agreement, of course it will be erected before this parliament, let's hope that it will be in the law this year. “
At the beginning of this month, Fitch Ratings hit a negative tone over the potential release of the regulations.
“Any turning reforms could withdraw a part of the planned fiscal consolidation in the medium period and would be moderately negative for medium -term fiscal perspectives, in our opinion. The French expenditure for retirement belongs to the highest in the EU “Fitchratings warned Note February 10.