France’s public finances are in a precarious state, with a €154 billion deficit leaving the nation “dangerously exposed” to potential economic shocks, according to the Cour des Comptes. This warning comes as President Macron faces a hung parliament after recent elections, with both far-right and left-wing parties pushing for increased public spending.
Former finance minister Pierre Moscovici highlighted the escalating costs of debt servicing, stressing that high deficits restrict funds for crucial sectors like education and security. The audit office also noted that France’s budget does not adequately cover environmental policies, predicting an additional €60 billion annual cost by 2030.
The European Commission has urged France to address its budget gap, which exceeded EU limits at 5.5% of GDP in 2023. France’s public debt, currently at 110.6% of GDP, is projected to rise further, complicating Macron’s goal of meeting the EU’s 3% deficit limit by 2027 amidst political deadlock.
