We must tighten our belts. In a letter addressed to his ministers, Sébastien Lecornu requested his authorities on Tuesday to implement 4 billion euros of “extra spending curbing measures” inside ministerial budgets because of the repercussions of the war in the Middle Eastwhose affect is estimated between 4 and 6 billion euros.
“We’re going to implement precautionary measures commensurate with this shock on the expenditure of the State and the administrations of Social security “, justifies the Prime Minister. A ministerial assembly dedicated to vitality is convened for Tuesday afternoon and the Prime Minister will speak at 6 p.m.indicated Matignon.
On Friday, Sébastien Lecornu indicated that the federal government was “making ready a subsequent support package deal” in Could for the sectors most affected by soaring prices gasoline, like farmers, fishermen or highway carriers. Intimately, the federal government has already introduced 130 million euros in help spending within the face of the disaster: 70 million to assist transporters, fishermen and farmers, and 60 million to strengthen the energy check.
Financial savings measures
This Tuesday morning, the general public finance alert committee, created final yr, meets in Bercy round a number of ministers together with that of the Economic system Roland Lescure and Public Accounts David Amiel. Parliamentarians, representatives of native elected officers, Social Safety and the State or unions should be current. Throughout this assembly, the federal government is predicted to announce financial savings measures up to 6 billion eurostogether with 4 billion euros for the State and a pair of billion for Social Safety.
The warfare within the Center East has led to a rise in rates of interest and subsequently the debt burden, for a value presently “round 3.6 billion euros”, Roland Lescure mentioned on Tuesday on RTL. The Minister of Public Accounts had additionally warned that “any new public expenditure which may very well be made needed by the vitality disaster” would result in “a cancellation of an expenditure which was deliberate, to the closest euro”, as a way to “meet (the) goals for 2026”.
Beneath the impact of the vitality disaster, the federal government of Sébastien Lecornu additionally needed to revise downwards final week its growth forecastat 0.9% in 2026 (in comparison with 1% forecast earlier than) and growing its inflation forecastat 1.9% (in comparison with 1.3% beforehand). However, he maintained its objective of 5% deficit this yr, after excellent news in 2025 (5.1% versus 5.4% initially anticipated). However Bercy warned that “vigilance” remained needed on the budgetary degree.
Credit score freezes
Beneath stress to behave on spending, the federal government might announce cancellations or freezes of credit affecting ministries, even when some could be extra spared. “We don’t see how Protection would toast,” mentioned one of many sources interviewed by AFP. In keeping with a union supply, the financial savings measures on Social Safety, carried out particularly by credit score restoration, “shouldn’t have an effect on these with social insurance coverage”.
Confronted with the size of the deliberate cuts, the president of the Meeting’s Finance Committee, Éric Coquerel (LFI), was extraordinarily crucial. This may have “a assured recessive impact on the financial system, development and tax revenues. It’s unfair and economically silly,” he wrote on
