Budget: Without recovery, the French economy will “go into the wall”, warns the Minister of the Economy

A new disaster forecast. “Today, if we do not have the budgetary adjustment that we put in the budget, we will go to the wall,” warned the French Minister of Economy and Finance, Roland Lescure on France Info on Friday. According to data published by INSEE, France's gross domestic product (GDP) fell by 0.1% in the third quarter, after stagnating in the second quarter and falling by 0.2% in the first.

A situation linked to an “unprecedented conjunction” of internal and external shocks, he recalled, referring in particular to the summer heatwave and the geopolitical tensions around the Strait of Hormuz which are fueling the surge in fuel prices. “Regain the path to growth” “The conclusion of all this is that in 2026, the French economy is at a standstill,” summarized the minister. And added: “It’s been three quarters that growth hasn’t been there.”

Roland Lescure defends the government's 2027 budget proposal, currently being examined by the National Assembly. The text aims to reduce the public deficit to 5% of gross domestic product (GDP), after 5.4% in 2026. But its adoption appears very uncertain, due to lack of a majority and with the presidential election approaching.

“I say it and I repeat it and I will repeat it to the end: we need a budget, we need a budget deficit of 5% or less. It is absolutely essential” to “get back on the path to growth” and reassure all investors and businesses that “France is not heading into crisis”.

Machine-translated from French