New Economy Minister Antoine Armand warned that France’s public deficit is “among the worst” in recent history, highlighting the urgent need for measures to restore fiscal stability. 

Speaking to France Inter radio, Armand said that, except for rare crisis years, the country has not faced such a severe budget imbalance. In June, the European Commission initiated a disciplinary procedure against France and six other EU countries for exceeding the 3% of GDP limit set by EU rules. 

Official figures show the deficit reached 5.5% in 2023. The government had projected a gradual improvement, reducing it to 5.1% in 2024 and 4.1% in 2025. However, new documents submitted to Parliament now estimate the shortfall could be even higher, reaching 5.6% this year and up to 6.2% in 2025. 

In response, Prime Minister Michel Barnier suggested raising taxes on “large companies” and the wealthiest sectors as part of a “national effort” to restore public finances. 

From the business sector, Medef President Patrick Martin expressed openness to dialogue but requested that any levy be limited, targeted, and temporary, applying only for 2025. 

The government will present the 2025 budget in October, facing pressure to balance the books while fulfilling promises to improve public services. Armand, who succeeds Bruno Le Maire after seven years in office, now faces a crucial challenge for the second-largest economy in the European Union.