The government announces 3 billion euros in additional savings and lowers its growth forecast to 0,7%

Meeting under the authority of Prime Minister Sébastien Lecornu, the public finance alert committee approved these new savings measures, which come in addition to the 6 billion euros already announced in April.

A total of 9 billion euros in savings, or even 11 billion with local authorities

According to the Ministry of Economy, the details of these new savings – whether it be freezes or cancellations of credit – will be specified later.

Furthermore, Minister for Public Accounts David Amiel indicated that a "risk of overspending" of €2 billion had been identified for local authorities. According to the Ministry of the Economy and Finance, this risk is linked to operating expenses that are increasing faster than anticipated, particularly in the regions.

The total volume of savings to be achieved thus reaches 9 billion euros, and could rise to 11 billion euros if local authorities implement measures equivalent to the identified risk.

"I have no doubt that many local elected officials are demonstrating a very strong sense of responsibility during this period and that we will therefore be able to refine the forecasts in the coming weeks," said David Amiel.

French growth revised downwards to 0,7%

At the opening of the committee, Economy Minister Roland Lescure confirmed the revision of the growth forecast to 0,7% for this year.

This decline is explained by "a less favorable start to the year than anticipated" as well as by "the international situation, particularly the conflict in the Middle East".

This estimate now aligns with those of INSEE, the IMF, and the OECD, which also forecast growth of 0,7%. For its part, the Bank of France predicts GDP growth limited to 0,5%.

With this revision, the government's objective of reducing the public deficit to 5% of GDP by 2026 becomes "difficult to achieve," acknowledged Roland Lescure, while assuring that the executive branch would do everything possible to "get as close as possible." An update to the deficit forecasts is expected in September.

Opposition critics point to the lack of specifics

Created in 2025 to strengthen the monitoring of public finances, the alert committee brings together representatives of the government, Parliament, local authorities, Social Security and social partners.

Following the meeting, the Senate's general rapporteur for the budget, Jean-François Husson (LR), expressed his regret over the announced savings measures "whose details weren't even provided." "This looks more like budgetary maneuvering than a genuine strategic direction," he stated.

Before the meeting, the senator had already warned about the country's financial situation, stating that France was "in the hospital, in the ward for those severely burned by debt." He had also declared: "Today I say: 'Hello Élysée Palace, Matignon, we are in deep trouble.'"

For his part, the chairman of the Finance Committee of the National Assembly, Éric Coquerel (LFI), considered that "from the moment these sums are reached, the Assembly should have been seized".

"This would have given us the means to seek additional revenue," he added, also believing that "the cost of the heatwave" should be considered, the consequences of which "should have been examined."

New savings following the April announcements

At a previous meeting of the alert committee in April, the government had already announced 6 billion euros in savings on public spending for 2026 in order to compensate for the cost of the conflict in the Middle East: 4 billion euros for the State and 2 billion euros for the social sphere.

David Amiel had warned at the time that further measures would be necessary. "We are going to announce a course of action," he had indicated before Tuesday's meeting.

Several political leaders had anticipated an additional budgetary effort. The budget rapporteur in the National Assembly, Philippe Juvin (LR), estimated the "effort to be made" at 10 to 12 billion euros, while the president of the Senate, Gérard Larcher (LR), estimated the additional cuts needed at 6 billion euros.

A still fragile economic context

The announcements come as several economic indicators deteriorated during the spring. French GDP fell by 0,1% in the first quarter, while inflation reached 2,4% year-on-year in May, before falling back to 1,8% in June.

These developments reinforce the challenges the government faces in staying on track to restore public finances while supporting economic activity.

Illustrative image of the article via Depositphotos.com.