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 political 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

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 political 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.