France’s national auditor has sounded the alarm about “worrying” budget deficits and public debt, warning the country is failing to come into line with Eurozone fiscal rules and is “dangerously exposed” to any fresh economic shock.
The latest statement from the Cour des comptes on Monday is embarrassing for President Emmanuel Macron’s outgoing government and his finance minister Bruno Le Maire. It is also directed at politicians from the far left to the far right, who are seeking power following the inconclusive snap National Assembly election and plan to impose policies that would place further strain on the public finances.
French public debt has now reached €3.1tn or 110 per cent of GDP, while the budget deficit last year was €154bn or 5.5 per cent of GDP, much worse than predicted by Le Maire and 0.7 percentage points higher than in 2022. France now faces an “excessive deficit” procedure brought by the European Commission, charged with enforcing the EU’s limit of 3 per cent of GDP.