Finance Minister Lescure said on Friday France’s economy will grow less than
expected this year and the government will not meet its budget deficit target.
He cut the government’s 2026 growth forecast to 0.5% from 0.7% and kept the
forecast for next year at 1.0%, citing four shocks: domestic politics
uncertainty, a surge in energy prices, extreme summer weather and a sharp rise
in bond-market borrowing costs. The downgrade raises the odds the government
will struggle to pass the 2027 budget in a deeply divided parliament ahead of
April–May presidential elections; Lescure added the budget had been prepared on
a 5% assumption that is now no longer feasible.
