MNI BRIEF: France Seeks To Reassure EU On Budget Track

France's acting Finance Minister Eric Lombard will attempt to deliver a reassuring message to eurozone finance ministers meeting in Copenhagen on Friday that the country will maintain efforts towards fiscal consolidation, a French government source told MNI.

While the 2026 budget deficit target of 4.6% of GDP set under the government of former Prime Minister Francois Bayrou is now unlikely to be met, Lombard will stress that France will stick to its 2029 target to bring the deficit below 3% of GDP. (See MNI: French Austerity Plan To Largely Survive Crisis-Officials)

"France will meet its commitments. Its commitments leave some wiggle room where there was some front loading to be done [in the previous French budget]," a French government source said. 

Prime Minister Sebastien Lecornu is currently in talks with political parties to get agreement on a new 2026 budget following the rejection of the previous proposal for a fiscal tightening of EUR44 billion. Talks are expected to run into early October.