France’s 2026 budget is a project that “requires demands”: Minister of Economic Affairs

French economy minister Eric Lombard will prove the 2026 budget for the second largest economy in the eurozone, a “strict” job, Eric Lombard told CNBC’s Charlotte Reed. An attempt.

France is working on a trajectory to reduce public deficits, aiming to reach 5.4% of national GDP in 2025 and fall below 3% in 2029, Lombard said. Under the European Union Expenditure Regulations, Member States must keep their deficits below 3% of GDP.

“Yes, 2026, that’s a very tight budget, because we’ll continue to reduce the deficit, of course, under 5.4%, and perhaps under 5%,” the economy minister told CNBC on Monday, finalising. The target was not set to stones.

“We will work with all political parties… discuss and talk with us. We will also work with unions, employers to reach a consensus on the main policies. “We’re going to go. The key to the country and the policies that allow us to make adjustments that allow us to do less in 2026,” he said.

The lack of budgets and wider instability in French politics have been on the market in recent months. Lombard has acknowledged the “negative impact on growth” and expressed hope that investors will return to France.

The country’s economic performance contracted at a 0.1% contraction in the fourth quarter, with the Bank of France’s national GDP in the first quarter being only slightly amid the expected increase from 0.4% growth in the last three months We expect an increase of 0.1-0.2%. Market Services and Energy sector, according to the latest monthly business research. The International Monetary Fund expects the French economy to expand by 0.8% over the full year 2025 period.

The budget is now finalized and the focus has returned to the fate of French President Emmanuel Macron’s controversial and highly contested debate over pension reform in 2023. .

France’s new prime minister, François Baileau, shows that the law can return to the agenda.

“I have full confidence in workers and employer representatives,” Lombard told CNBC’s lead. “And they know their responsibility is to find adjustments… and they have three months to do it, I think they’ll reach an agreement on it. I’m sure it can be, and once they reach an agreement, of course, it will be put forward by Congress, hopefully soon to take the law this year.”

Fitch’s rating earlier this month hit a negative tone about the potential abolition of the law.

“In our view, reform rewinding could cancel some of the planned fiscal consolidation over the medium term, making it moderately negative to the medium term financial outlook. France’s pensions Related spending is the highest in the EU. “Fitchratings warned in a note on February 10th.