In addition to an alert committee meeting on Tuesday, Sébastien Lecornu detailed the consequences of the conflict for public finances and asked his government to find ways to make savings “in line with this shock.”
Published on April 21, 2026 at 17:19, the first meeting of the year for the public finance alert committee took place. New aid to address the surge in fuel prices is expected in May.
According to Lecornu, the conflict in the Middle East could cost France at least 6 billion euros. The debt burden is expected to rise significantly as interest rates have increased fivefold due to the war’s impact on global trade.
Additionally, the government has revised its inflation forecast for 2026 to 1.9%. This will impact social security contributions and expenses tied to inflation, leading to increased state spending.
Despite France’s non-belligerent stance in the conflict, the cost of external military operations is estimated at 1 billion euros for 2026. The war has also caused a decline in fuel-related state revenues.
The government has implemented 150 million euros in aid since the conflict began, with additional measures planned for May. Expense cuts of 4 billion euros within ministry budgets are also urged to offset the financial impact.
To achieve these savings, the freeze and cancellation of specific expenditures are being considered. Measures are being prepared to address the crisis and reduce the deficit to below 5% of GDP by 2029.
A follow-up meeting is scheduled for June to re-evaluate the financial situation and adjust accordingly.
