France Needs €40 Billion in Savings to Reach 2026 Deficit Target

France will need to find a further €40 billion in savings to reach its 2026 budget deficit target, Finance Minister Eric Lombard said.

The government is maintaining its 2026 deficit target of 4.6% of GDP, but will require “additional efforts,” Lombard said in an interview with BFM TV on Sunday. Those would consist primarily of savings and could also include higher revenues from economic growth, he added.

France cut its growth forecast earlier this week, citing uncertainty triggered by US President Donald Trump’s sweeping tariffs. The change of forecasts marks a swift deterioration in the country’s economic prospects, less ...