16 July 2025 | Euro

Francois Bayrou announced measures to address France's growing budget deficit

Francois Bayrou announced measures to address France's growing budget deficit

Francois Bayrou has announced measures to address France's growing budget deficit. The government plans to reduce the deficit by 43.8 billion euros ($50.88 billion) to stabilize public finances, aiming to lower it to 4.6% by 2026 and 3% by 2029. Last year, France's deficit reached 5.8% of GDP, nearly twice the EU limit, due to falling tax revenues and increased spending.

Prime Minister Bayrou warned that France has become dependent on government spending and risks a credit rating downgrade if action isn't taken. The plan includes freezing most government spending (except for defense), cutting 3,000 civil service jobs, merging agencies, and limiting healthcare payments. Additional savings will come from freezing social benefits, wages and tax benefits. The government also proposes reducing some public holidays to improve productivity, according to reports.

Anton Volkov MarketCheese
Period: 14.11.2026 Expectation: 3500 pips
Sell Bitcoin with $75,000 in view
30 October 2026 81
Period: 14.11.2026 Expectation: 150 pips
Go short on SPX down to $7,500
30 October 2026 102
Brent sell
Period: 29.11.2026 Expectation: 450 pips
Brent crude sell-off targets $105
29 October 2026 81
Period: 12.11.2026 Expectation: 28000 pips
Go long on NVIDIA stock up to $243
29 October 2026 85
Period: 28.11.2026 Expectation: 130 pips
Invest in SPX with 7,850 in view
28 October 2026 113
Period: 28.11.2026 Expectation: 4200 pips
Selling EURUSD down to 1.07000
28 October 2026 129
Go to forecasts