Warning over economic problems in France
Emmanuel Moulin, Governor of the Bank of France, said that the country’s economic situation is concerning.
France’s central bank governor, Emmanuel Moulin, said the country’s economic situation is concerning. He called on the government and parliament to take measures to address public finances and the budget deficit. According to Moulin, France is not in danger, but the current situation is unsatisfactory. The high budget deficit remains one of the country’s main economic challenges.
Economic growth in France has also weakened. The National Institute of Statistics and Economic Studies (Insee) cut its forecast for economic growth in 2026 from 0.7% to 0.4%. Weak consumer spending and declining investment were cited as the main reasons.
The economic slowdown is making it harder for the government to reduce the budget deficit from 5.1% of GDP to 5%. Uncertainty over next year’s budget is also increasing. Opposition lawmakers oppose the government’s proposed spending cuts ahead of the presidential election. Moulin stressed that growth in the eurozone is stronger, while France is lagging behind. He also highlighted the importance of improving public finances.