France: the IMF judges the budgetary adjustment envisaged “adequate”

Paris said they wanted to make savings to bring the public deficit back under 3% of GDP by 2029. Consequently, without revealing for the time of concrete tracks for 2026. Furthermore, The Prime Minister should do it on Tuesday. Moreover,

The International Monetary Fund (IMF) tried on Monday “adequate the budgetary adjustment in the medium term envisaged” by the French government to try to control the public deficit of France. which skidded in 2024.

In an annual report that the Washington institution makes public for almost each of its member countries. it recalls that “despite efforts to control spending, budget orientation was again expansionist in 2024”: France’s deficit had increased to 5.8% of GDP, much more than the 4.4% initially anticipated.

The French government has since repeatedly indicated that they want to make savings to bring the public deficit back under france: imf judges budgetary adjustment 3% of GDP by 2029. without revealing for the time of concrete savings for 2026.

Prime Minister François Bayrou should do so on Tuesday.

A project whose IMF supports the principle: it underlines “the urgent need to strengthen French public finances”. “to continue the structural reforms”.

“The medium-term budgetary adjustment envisaged by the authorities is adequate to strengthen public finances and must be supported by (…) a set of credible and well-designed measures,” he writes.

For the IMF. the “priority” of this “budgetary sanitation” must be “the rationalization of current expenses” of both “administration” and “social security”.

The institution recognizes that “compromises” are “difficult in the national. international context”, a reference in particular to the absence of an absolute majority for the government coalition in the National Assembly.

Among the possible savings avenues that could be revealed on Tuesday is that of “the white year”. a frost in 2026 of france: imf judges budgetary adjustment expenses and retirement pensions at 2025, without revaluation linked to inflation.

For the IMF, “the French economy showed resilience” in 2024 in the face of “strong uncertainty”.

The fund welcomed “the disinflation that progresses well” – inflation increased to 1% in June against 2.5% in June 2024 -. a “labor market which remains robust,” with a number of job seekers down in the first quarter of 2025.