The IMF said France must secure timely approval of its budget to preserve fiscal
credibility and restore market confidence. IMF Fiscal Affairs Director Rodrigo
Valdés, speaking in Bangkok at the IMF annual meetings, said heavily indebted
France can no longer delay fiscal reform and that timely means the budget must
be implemented without weakening amendments. The minority government’s draft
2027 budget targets a 5% of GDP deficit — consistent with its earlier target but
likely to be breached this year — and remains above the EU 3% limit. A divided
parliament begins review this week, and opposition resistance to spending cuts
and revenue measures casts doubt on the bill’s passage.
