France risks not reaching the budget deficit target of 5% of GDP by 2026, after lowering the economic growth forecast.

The French Minister of Finance, Roland Lescure, warned that the country risks not meeting its budget deficit target of 5% of GDP this year, amid a slowing economy.

In a report addressed to Parliament, Lescure revised the economic growth forecast for 2026 from 0.9% to 0.7%, citing a weak start to the year and the impact of the war with Iran. This slowdown affects tax revenues, and the government has been forced to provide support to sectors affected by rising energy costs.

The Budget Minister, David Amiel, indicated that additional spending cuts of 3 billion euros will be necessary, alongside the 6 billion already saved. Additionally, local authorities' spending could exceed estimates by 2 billion euros, complicating the preparation of the budget for 2027, which will be presented in September.

France's public debt, estimated at 3.5 trillion euros, continues to rise ahead of next year's presidential elections.