France Urged to Ramp up Debt-Cutting Push in IMF Budget Warning

France urged to ramp up debt-cutting push in IMF budget warning

France will achieve the smaller deficit it aims for this year but must be ready to make further significant efforts in the future to tackle rising debt, the International Monetary Fund said.

In its annual report, the international institution calls for clear budgetary choices, while not recommending a further increase in the tax burden, which is already considered too strong.

For a long time unthinkable, the assumption that France should be placed under supervision in view of the slippage of its public expenditure is no longer totally excluded by experts in the medium or long term.

Summary: The IMF requires France to make "significant additional budgetary efforts" to avoid a deficit blocked at 6% of GDP and a growing debt until 2030 The institution does not recommend any additional tax increases because France already has one of the highest levels of taxation in Europe, at the risk of further curbing the expected growth to only 0.6% in 2025 The French government must find 40 billion euros in savings notably through the rem…

The IMF is raising its tone. The message is clear, but the project is making an explosive announcement. Between warnings, economics and sensitive reforms, the international institution is laying down its conditions. And Bercy no longer really has the choice. A severe IMF diagnosis of French finances The tone is dry, without a doubt. In its annual report published on 22 May 2025, the IMF warns: without "significant additional measures", France wi…

Paris fails to get deficit and rising debt under control