IMF warns France of mounting fiscal risks and high debt
The International Monetary Fund warned that France faces significant public finance risks as budget tightening efforts proceed more slowly than planned. With the deficit at 5.1 percent of GDP, the fund called for structural reforms to manage rising spending pressures from defense and an aging population.
The International Monetary Fund warned France that its 5.1% budget deficit and high debt levels leave the economy vulnerable to market shocks. Current policies will likely miss the government's 3% deficit target by 2029 as budget-tightening lags. The IMF staff concluded an annual visit, noting that public spending reached 57.5% of GDP last year.
The fund stated that implementation risks threaten the current fiscal consolidation plan. Debt is projected to stay elevated without additional measures.
