PARIS – The French government has reaffirmed its commitment to reducing the nation’s deficit to under 3% of Gross Domestic Product (GDP) by 2029, a target officials are characterizing as “absolute” despite ongoing economic headwinds. The pledge,reiterated on October 19,2025,underscores a renewed focus on fiscal discipline amid concerns over rising national debt and pressure from European Union budgetary rules.The commitment to a sub-3% deficit by 2029 is a key component of President Emmanuel Macron’s broader economic strategy, aimed at stabilizing France‘s public finances and maintaining its economic competitiveness within the Eurozone. Achieving this goal will require sustained efforts to control government spending and stimulate economic growth, impacting public services, investment programs, and perhaps, tax policies. Failure to meet the target coudl trigger scrutiny from the European Commission and potentially lead to corrective measures.
France’s public deficit reached 5.5% of GDP in 2023, significantly exceeding the EU’s 3% limit. While the government has projected a gradual reduction in the coming years, reaching the 2029 target will necessitate a considerable acceleration of these efforts. The government’s plan relies on a combination of spending cuts, tax increases, and anticipated economic growth.
The renewed emphasis on deficit reduction comes as the EU prepares to reinstate stricter budgetary rules after a period of suspension during the COVID-19 pandemic. These rules, designed to ensure fiscal stability within the Eurozone, require member states to maintain enduring public finances. France,along with other heavily indebted nations,faces increased pressure to demonstrate its commitment to fiscal obligation.
