According to the French Court of Auditors, France is in a state of fiscal derailment, as revealed in its annual report on the country’s public finances and future outlook. The report urges the government to take immediate action. Specifically, its president, former minister and European Commissioner Pierre Moscovici, has called on the French government to implement urgent measures, noting that by the end of 2029, the country must save €105 billion.
The report highlights that debt servicing costs for France have doubled between 2020 and 2024. If this trend continues, these costs will surpass annual spending on Education or Defense. Additionally, France currently has the largest fiscal deficit in Europe, and to set the country on a path toward financial recovery, it must achieve a primary surplus equivalent to 1.1% of its GDP in the coming years.
When asked by journalists whether France could face a fate similar to Greece’s from 15 years ago, Moscovici stated that if necessary measures are taken, the kind of austerity imposed on Greece would not be required. He also emphasized that there is no question of France turning to the International Monetary Fund.