Budget Consultations with Left-Wing Groups Continue Ahead of 2026 Budget
Ongoing budget consultations involve left-wing parties as France prepares for fiscal challenges ahead.
Key Points
- • Ongoing budget consultations with left-wing parties including the PS and PCF.
- • The government aims to achieve 40 billion euros in savings for 2026.
- • Projected budget deficit is 5.4% of GDP in 2025, targeted for 4.6% in 2026.
- • Further discussions will continue until July 11, with PM Bayrou's announcement on July 15.
The French Ministry of Economy is advancing consultations with left-wing political factions, notably the Socialist Party (PS) and the Communist Party (PCF), as it prepares for the 2026 budget announcement. The discussions, aimed at achieving significant budgetary measures, are part of a broader strategy to uncover 40 billion euros in savings. Prime Minister François Bayrou is poised to unveil these budgetary proposals on July 15, 2025.
Current economic forecasts indicate a budget deficit of 5.4% of GDP for 2025, which the government aims to reduce to 4.6% in 2026. On July 7, representatives from the PS and PCF expressed their readiness to engage in negotiations amidst these financial pressures. Eric Coquerel, the LFI’s Finance Committee president, warned about the potential impact of an 'année blanche', suggesting it might lead to substantial cuts in state budgets and local government spending, while emphasizing the necessity for transparency in economic policymaking.
Boris Vallaud, leader of the PS deputies, highlighted concerns that budget efforts should not further burden vulnerable populations already facing significant economic challenges. Discussions with political stakeholders will persist until July 11, with efforts focused on finding collaborative ways to address the pressing financial issues.