The government is expected to announce measures to save up to six billion euros, with four billion coming from state expenses and two billion from social security. The ongoing war in the Middle East is putting pressure on public finances. The government may cancel or freeze credits affecting ministries, though defense is unlikely to be affected. The measures will vary across ministries, and social security beneficiaries are expected to be protected.
Recently, the government adjusted its economic growth forecast to 0.9% in 2026 (down from 1% previously) due to rising energy prices. Inflation forecasts were raised to 1.9%. The Middle East conflict is significantly increasing the debt burden by around four billion euros. Any new public spending necessitated by the energy crisis will result in the cancellation of previously planned expenses.
On Tuesday morning, a meeting of the Public Finance Alert Committee will be held at Bercy, bringing together parliamentarians, local elected officials, social security and state representatives, and union members, along with ministers from various departments.
