The deficit is expected to reach 5.4% of GDP in 2026, compared to the initially planned 5%, the government acknowledged on Thursday. Prime Minister Sébastien Lecornu is now targeting 2027 to regain control of public finances, a deadline several economists view as uncertain.
Le Monde breaks down the stakes surrounding French debt, deficits and interest rates.
The prime minister is asking his government to maintain state spending in 2027 at the same level as 2026, while reminding lawmakers of the urgency of adopting the finance bill, particularly in response to the Lyhanna affair.
In an op-ed published by Le Monde, the former pensions secretary contends that retirees have no debt to working-age people and warns against certain funding options for the system.
The prime minister invokes "exemplary conduct" amid deteriorating public finances, while excluding the defense sector from this directive.
The French government's borrowing rate reached 4.5% on Monday, an unprecedented level since 2008, while the gap with Germany has widened further.
The institution's new president, Claire Thoury, is betting on this sensitive subject to reinvigorate the Economic, Social and Environmental Council as the 2027 presidential election approaches.