The new French government, led by François Bayrou, is counting on a public deficit oscillating between 5% and 5.5% of GDP in 2025. With a pragmatic approach combining budgetary savings and political dialogue, the Executive wishes to preserve growth while stabilizing public finances.
On Monday, the Minister of the Economy, Éric Lombard, revealed the budgetary ambitions of the Bayrou government: to reduce the public deficit below 5.5% of GDP in 2025, while allowing a certain flexibility. An ambitious objective which is based on 50 billion euros in savings, or 10 billion less than what the former government led by Michel Barnier had planned.
“We must not break growth, we must protect growth,” insisted Mr. Lombard, ruling out any new tax increases beyond those already in place.
This strategy is accompanied by a desire for dialogue with the parties to develop a consensual budget for 2025, a delicate political exercise after the censorship of the previous government.
A budgetary priority under the sign of unity
During the first Council of Ministers, President Emmanuel Macron urged the new Executive to show “unity” and “audacity” to have a budget adopted quickly. With this in mind, the Ministers of the Economy and Public Accounts, Éric Lombard and Amélie de Montchalin, have started consultations with all the political forces in Parliament. These discussions, officially launched this Monday, promise to be crucial for setting budgetary priorities for 2025. To maintain administrative continuity, the government has already renewed the commitment authorizations provided for by the 2024 Finance Law.
A deficit of 6.1% in 2024: a challenge to meet
The French public deficit, estimated at 6.1% of GDP in 2024, remains a major challenge. Budgetary projections for 2025 will not only have to reduce this rate, but also preserve the engines of economic growth, in a context marked by economic and social uncertainties.
A budgetary exercise under close surveillance
As François Bayrou prepares to present his general policy speech on January 14, all political forces are scrutinizing the first decisions of this government. The ability of the Executive to build consensus around budgetary choices will be decisive in achieving its ambition for recovery and financial stability.
Sami Nemli With Agency / ECO Inspirations
