France's budget deficit to exceed 5% of GDP this year, finance minister says
French finance minister Roland Lescure said the country's budget deficit will surpass 5% of GDP this year, a level officials had warned would put Paris in the danger zone with creditors.
France's budget deficit is set to exceed 5% of gross domestic product this year, finance minister Roland Lescure said on Friday, confirming that the government will miss a threshold it had previously treated as a red line.
Speaking to reporters, Lescure said the 5% mark could no longer be met. "The reality is that 5% is no longer an option today," he said.
The admission marks a setback for Paris, which had been aiming to keep the deficit at or below 5% of GDP. French officials had earlier cautioned that breaching that level in 2026 would push the country into the danger zone with international creditors, raising the prospect of higher borrowing costs and closer scrutiny of its public finances.
France has been under pressure to bring its fiscal house in order as deficit and debt levels remain well above the limits set by European Union budget rules. The latest projection adds to the challenge facing the government as it prepares its budget plans.
Lescure did not provide a revised figure for the deficit, leaving the final number to be confirmed in upcoming fiscal estimates. The government has yet to set out how it intends to close the gap.