The French government’s target to reduce the 2025 budget deficit remains achievable, but rising costs will require an additional €5 billion ($5.9 billion) in spending cuts, the Finance Ministry

announced on Thursday.

Prime Minister François Bayrou’s centrist minority government is grappling with the challenge of reining in public finances amid higher-than-expected spending and underperforming tax revenues.

Following last summer’s election, which resulted in a hung parliament, this is the second administration attempting to bring the country’s deficit under control. The current goal is to reduce the public sector deficit from 5.8% of GDP in 2024 to 5.4% in 2025, moving toward the broader EU-mandated target of 3% by 2029.

“The diagnosis is clear, and so are the decisions: meeting the 2025 deficit target of 5.4% of GDP remains possible, but requires an additional €5 billion in savings,” the ministry said in a statement.

A mid-year review of public finances revealed that, while tax revenue is in line with forecasts, spending in areas such as health care, local governments, and certain ministries has slightly exceeded budgeted amounts.

These new cuts are in addition to €5 billion in budget freezes already implemented earlier this year, according to a ministry source.

With opposition parties actively considering a no-confidence motion, Prime Minister Bayrou is expected to soon unveil a broader plan that includes €40 billion in spending cuts as part of the 2026 budget proposal. Photo by Milky, Wikimedia commons.