David Amiel: France's Finances on Edge

The French Budget Minister, David Amiel, stated that the financial situation in France is akin to a "barrel of gunpowder," calling for serious decisions to be made regarding public spending cuts before the upcoming presidential elections. He clarified that the government's priorities include preparing the 2027 budget and reducing spending now, as the new president can adjust policies if desired. He also confirmed that borrowing costs are expected to rise by approximately 11 billion euros during this year. The financial crisis is linked to increased expenditure on healthcare and pensions due to an aging population, which accounts for 58% of public spending. He urged election candidates to present credible proposals rather than electoral promises of increased spending, especially given the challenges of reducing the deficit caused by sluggish growth, defense spending, and the repercussions of the Iranian conflict.

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