(Le Figaro, Gilles Boutin, June 4, 2026)
The European Commission, in its spring package, urges France to maintain strict budget discipline to bring the deficit below 3% of GDP by 2029, avoiding massive and generalized consumption support measures to cope with the rise in energy prices due to the war in the Middle East. Brussels accepts slight flexibility on budget rules to finance the energy transition but reiterates the need for temporary and targeted measures.
The document highlights that France has the second highest level of public spending in the EU at 57.2% of GDP and calls for an ambitious and comprehensive review of expenditures, including a pension reform, where the effective retirement age remains low despite the 2023 reform suspended until 2028. The Commission warns that without structural reforms the debt trajectory will significantly worsen.
Brussels criticizes the high level of tax pressure in France, especially on labor and production, and suggests a rebalancing towards higher consumption taxation, along with a simplification of the tax system and measures to improve business competitiveness by reducing bureaucracy and regulatory constraints.
Recommendations for the deficit
“The excessive deficit procedure against France remains frozen, which is a positive signal, but the priority remains compliance with the trajectory that must allow a return below the 3% of GDP threshold in 2029.”
Avoid generalized measures
“The authors encourage the government to continue to avoid any massive consumption support measures to cope with the surge in fuel prices. These expenses must remain temporary and targeted.”
Excessive public spending
“At 57.2% of GDP in 2025, France shows the second highest level of public spending in the European Union, 7.7 points above the average. This gap should reduce by only 0.7 points in 2026.”
Suspended pension reform
“This suspension leads to a deterioration of the public administration budget balance until the mid-2030s, an increase in public debt, and a weakening of the positive effects of the reform on the labor market.”
Tax rebalancing
“Mandatory levies remain significantly higher in France (44.3% of GDP) compared to the EU (39.9% on average). Taxation on labor and production is among the highest, to the detriment of competitiveness.”
(Excerpt from the newsletter by Giuseppe Liturri)
