To straighten its finances, France must make “very demanding” efforts, estimates the Court of Auditors

In its annual report devoted to public finances, the Court of Auditors draws up, this Wednesday, July 2, 2025, a severe observation of the situation in France, which displays the highest public deficit in the euro zone (5.8 % of the gross domestic product in 2024) and the third heaviest debt (3,345.8 billion euros, or 114 % of GDP at the end of March).

It estimates that almost 105 billion euros are necessary (savings in expense. Moreover, additional revenue) to bring the public deficit under 3 % of GDP in 2029, as the government aims after the years 2023 and 2024 “black” marked by important budgetary slippages, consequences in particular “of an inability to control the dynamics of expenditure”.

Voluntary effort now or austerity suffered tomorrow.

“Very demanding budgetary adjustments are therefore now necessary. Furthermore, and to be carried out in 2026,” said the high court, straighten its finances, france must calling for “regaining control of the debt dynamics”.

“Significant risks” from 2025 – Straighten its finances, france must

For its first president. For example, Pierre Moscovici, it comes to a “choice between the voluntary effort now and the austerity suffered tomorrow”. Meanwhile, The latter considers “possible” for France to straighten its accounts, taking the example of Greece.

To reduce the deficit to 5.4 % of GDP in 2025 and 4.6 % in 2026. the government provided a budgetary effort of around fifty billion euros this year, and wishes to make another 40 billion in 2026.

According to the Court of Auditors. “significant risks” remain in 2025, in particular growth weakened by the American trade war and geopolitical tensions, expected at 0.6 % by INSEE and 0.7 % by the government.

It also points to the temporary nature of almost half of the tax increases this year as well as objectives of controlling “fragile” spending. based on “no significant structural economy”.

For the straighten its finances, france must following years. the trajectory of public finances has been deemed “just as fragile”, in a context forced by the will of France to rearm itself and the increase in the cost of debt, likely to become the first post of budgetary expenses, before education and defense.

“The postponement of efforts is no longer possible” at the risk of seeing the debt ratio of France get carried away. alerts the court.

Massive tax increases instead of spending savings cannot be a miracle solution.

Reconnect with what France “has not managed to do for 25 years”

In their response integrated into the report. the Ministers of the Economy, Éric Lombard, and public accounts, Amélie de Montchalin, reaffirm that the mastery of the expense is “at the heart of (their) action”.

Amélie de Montchalin said on Wednesday favorable to “a break” on certain public spending in 2026. as part of a possible “white year” which would consist in straighten its finances, france must freezing for a year pensions, social benefits and scale of income tax.

Eager to build a “compromise” budget. she receives, Wednesday, in Bercy, with Éric Lombard, representatives of the National Rally (RN) and horizons, inaugurating a series of meetings with parliamentary groups for the preparation of budgetary texts.

However. she said she was opposed to an “undifferentiated” increase in taxes, a red line also for the president of the LR group in the National Assembly, Laurent Wauquiez.

“Massive tax increases instead of spending savings cannot be a miracle solution”. France is already one of the champions of compulsory levies, has abounded Pierre Moscovici.

To ensure the sustainability of its debt. the Court of Auditors considers that in addition to a deficit under 3 % of GDP, France must “revive sustainably” with a primary (excluding load of debt) “positive” of around 1.1 point of GDP, which it “has not managed to achieve for almost 25 straighten its finances, france must years”.