EU urges France to stay the course on budget cuts

France must stay on course with its plans to lower debt and narrow its budget deficit, said European Economics Commissioner Valdis Dombrovskis on Tuesday.

Speaking in Brussels ahead of an EU finance chiefs meeting, Dombrovskis underlined the importance of maintaining fiscal discipline despite the country’s political upheaval.

France’s government fell last week for the first time in over 60 years, leaving President Emmanuel Macron searching for a new prime minister. The political gridlock delays fiscal planning, with fresh legislative elections unlikely before July 2025.

Outgoing Prime Minister Michel Barnier’s administration is preparing a temporary spending bill to ensure state operations continue into the new year without an approved 2025 budget.

France’s finance minister, Antoine Armand speaking briefly at the meeting, did not comment on the domestic crisis. Hungary’s Mihaly Varga, chairing the meeting, noted the broader impact of France’s political instability compared to Germany’s similar challenges.

Despite the delays in submitting fiscal plans, Dombrovskis acknowledged the situation as a product of democratic processes but stressed the need for credible fiscal strategies.

Attribution: Bloomberg

Subediting: Y.Yasser