PARIS – France has requested additional time from the European Commission to submit its plan for reducing its budget deficit, aiming to synchronize it with the 2025 draft budget. This request, reported by La Tribune du Dimanche on Sunday, follows growing financial concerns and was confirmed by the country’s Finance Ministry.
In a letter sent to lawmakers earlier this month, the ministry highlighted that France may face a larger-than-expected budget deficit this year and the next unless significant savings are identified. These financial strains have placed France, the euro zone’s second-largest economy, under scrutiny, sparking concerns over potential EU disciplinary actions.
With the deadline for submitting the deficit reduction plan originally set for September 20, the ministry is seeking an extension to ensure the proposed plan aligns with the upcoming 2025 budget. Although no specific timeframe for the requested extension was disclosed, the ministry emphasized the need for coherence between the plan and the 2025 fiscal projections.
A spokesperson for the European Commission noted that while September 20 is the standard deadline, there is flexibility to extend it if member states agree with the Commission. However, at this time, the Commission has not confirmed receiving France’s request.
Incoming Prime Minister Michel Barnier, who was appointed by President Emmanuel Macron after a lengthy search, faces the challenge of preparing a new budget by October 1. With the possibility of a no-confidence vote looming over his government, Barnier has limited time to address the country’s financial challenges, including difficult decisions on spending cuts and potential tax increases.
Barnier, formerly the EU’s Brexit negotiator, acknowledged over the weekend that solving France’s budgetary issues would not be easy. Meanwhile, opposition parties, including the leftist New Popular Front (NFP) and the far-right National Rally (RN), hold significant sway in the current political landscape. The RN has indicated its willingness to support Barnier under certain conditions, while also warning that it could vote against the government if the party’s voters are neglected.
