Media: French PM calls for €4 billion in budget cuts amid rising costs

French Prime Minister Sébastien Lecornu has warned government ministers about a significant rise in budgetary pressures linked to the consequences of the conflict in the Middle East and has called for a revision of financial plans for 2026, BFM reports, citing government sources.

According to the Prime Minister’s estimates, the worsening geopolitical situation could cost France at least €6 billion. This includes higher borrowing costs due to rising interest rates, increased social spending driven by inflation, and additional expenses related to overseas military operations.

The 2026 economic growth forecast has already been revised downward from 1% to 0.9%. Debt servicing alone is expected to increase by more than €3.6 billion.

Additional costs for France’s foreign military operations could exceed €1 billion next year, as their duration extends amid prolonged conflict conditions.

In response, the government has instructed ministries to cut spending by approximately €4 billion, including reductions across departmental budgets and the social security system. Authorities stressed the need to preserve the country’s fiscal stability and said the situation will be reassessed in June.

By Jeyhun Aghazada