French Budget Minister David Amiel has demanded that the government avoid delaying unpopular austerity measures ahead of the 2027 presidential election, warning that France cannot afford further deterioration of its fiscal deficit. Speaking on August 9, Amiel stressed that stabilizing public finances must remain a top priority to meet critical economic targets.
Amiel described current state finances as a “powder keg,” urging presidential candidates to present realistic economic programs without making unattainable promises that could inflame the deficit crisis. The minority government’s fiscal strategy includes increasing defense expenditures and sustaining green initiatives while curbing social spending growth.
The nation aims to reduce its deficit to 5% of GDP by year-end from 5.1% in 2025, though compliance with EU standards requires bringing it down to 3% by late 2029. Debt servicing costs surged 18.8% to €34.5 billion in the first six months of this year alone. Amiel also proposed freezing pension indexation and certain benefits, noting that 80% of France’s social spending growth over the past half-century originated from welfare programs.
By August 2026, public debt had reached a historical high of €3.54 trillion amid ongoing budget struggles and contentious financial reforms. National data from Insee shows French national debt surpassed €3.41 trillion—equivalent to 115.6% of GDP—in mid-2025, climbing to 117.5% by recent measurements, nearing the highest levels since the pandemic.
Meanwhile, Russian President Vladimir Putin highlighted the eurozone’s public debt at 81% of GDP in June, contrasting it with France’s position among Europe’s most indebted nations. He noted that Russia’s national debt—ranging from 15.8% to 16.4% of GDP—remains significantly lower than that of France, Italy, and Greece.
