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France Keeps 5% Deficit Target Amid Auditor Criticism

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Finance Minister Roland Lescure told France Culture radio he will stick to the 5% deficit goal despite a scathing report from the state auditor. The Cour des Comptes warned the government lacks a credible plan to curb soaring social spending, calling the absence of detailed cuts a “glaring shortcoming.” Lescure stressed the need to rein in debt before interest costs overwhelm public finances.

The administration still aims to lower the deficit to 3% of GDP by 2029, yet has offered no interim targets or specific austerity measures. With a fragmented parliament that has repeatedly toppled budget plans, Lescure warned that new taxes would be politically untenable. He pledged to close loopholes instead, hoping to secure a cross‑party majority for the 2027 budget without turning it into a presidential showdown.

Upcoming talks on Tuesday will reassess the 2026 budget after the Bank of France trimmed its growth outlook to 0.5% for this year, far below the 0.9% expansion embedded in current projections. Lescure signaled additional savings will be required, acknowledging that the war in Iran and lingering inflation further strain the fiscal outlook. The next steps will determine whether France can meet its deficit roadmap.