French Government Unveils Financial Plan to Parliament: Growth Forecasts Aim for 1.1% in 2025 and 1.5% by 2027

The French government has presented a long-term plan to parliament aimed at curbing the budget deficit in the coming years. The plan commits to reducing the deficit from 6.1% of GDP in 2024 to 2.8% by 2029, starting with a sharp adjustment next year. The projections submitted to parliament are based on GDP growth accelerating from 1.1% next year to 1.4% in 2026 and 1.5% in 2027. As part of the procedure to extend the adjustment period from four to seven years to correct France's public finances, the plan will be sent to the EU by the end of the month. To meet the conditions for such an extension, the government has also presented reforms, which it says will improve economic prospects, including raising the retirement age and changes to unemployment insurance.