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France Faces IMF Oversight Threat Amidst Budget Crisis
- On June 10, 2025, Budget Minister Amelie de Montchalin warned France risks supervision by the IMF or European bodies due to financial issues.
- This risk stems from France's large public sector deficit, estimated at 5.4% of GDP in 2025, and repeated failure to meet EU budget rules.
- Prime Minister Francois Bayrou plans fiscal reforms starting July 2025 aiming to reduce the deficit to 4.6% of GDP by cutting 40 billion euros in spending.
- The Court of Auditors advised in October 2024 to cut 100,000 civil service jobs, saving 4.1 billion euros, but unions protested these measures as harmful.
- France faces a challenging choice between enforcing austerity to improve finances or risking external control while maintaining public services efficiency.
23 Articles
23 Articles
The line of prudence and accountability on public finance has given its results and the developments in the accounts are appreciable also in the light of the deterioration of the international macro-economic scenario.
AUDIT - The Minister of Public Accounts referred to the threat of intervention by international or European bodies to manage the public accounts of France, while the country must find 40 billion euros in savings for its next budget.
In search of €40 billion in savings, ministers Eric Lombard and Amélie de Montchalin have reactivated this source of concern for trade union organisations, which at the same time alert about the remuneration of public officials.
In the face of the record public deficit, the Minister of Public Accounts, Amélie de Montchalin, advocates a reduction in the number of employees in the public service, offset by wage increases, a strategy based on the example of the tax administration reform carried out in recent years.
All right, France is dragging a big liability after years of deficit budget. But even with a debt of 3300 billion, it will not declare itself bankrupt or approach such a scenario as a handful of politicians, Amélie de Montchalin in the last place, like to repeat it. Not without back thoughts...
The government is currently working on the 2026 budget, which must include 40 billion euros of savings. However, two major tax credits should be saved, said the Minister of Public Accounts Amélie de Montchalin on Tuesday. - Budget 2026: the government refuses to receive these two tax credits (Economy).
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