27 June 2025 | Euro

France needs to cut spending again to meet 2025 budget target

France needs to cut spending again to meet 2025 budget target

According to information released by the country's Ministry of Finance, the French government needs to cut spending by an additional 5 billion euros (over $5.8 billion) to meet its target of reducing the budget deficit to 5.4% of GDP in 2025.

The ministry reports that tax revenues are in line with expectations. However, overspending has been observed in several areas. Expenditures by certain ministries, municipalities, and the healthcare system are slightly exceeding the planned budget.

The French government is preparing more substantial measures beyond those already mentioned. While opposition parties are seeking opportunities to table a no-confidence vote, the country's Prime Minister Francois Bayrou plans to unveil a new 40 billion euros ($46.8 billion) spending cut for next year's budget in the coming weeks.

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