BUDGET CUT – To finance the cost of the war in the Middle East, the government announced on Thursday nearly 4 billion euros in freezes and cancellations of credits in the 2026 budget, with savings that will affect the majority of ministries
The conflict in the Middle East is beginning to weigh on public finances. The government confirmed on Thursday new budgetary saving measures in order to compensate for the financial consequences of the war. The Ministry of Action and Public Accounts plans to freeze 3.2 billion euros in state credits and cancel an additional 847 million euros in the 2026 budget.
These decisions come in addition to the 2.2 billion euros already obtained thanks to the freezing of reductions in social contributions on low salaries announced last week. In mid-April, the executive had already mentioned the possibility of making up to 6 billion euros in savings through credit freezes and “targeted cancellations”.
A prime minister “décret d’avance”
In detail, Bercy has prepared a first “advance decree” providing for 407 million euros in credit cancellations. This sum must in particular finance aid intended for heavy vehicles for 320 million euros as well as the extension of the energy check to 700,000 additional beneficiaries for 87 million euros. A second decree also provides for the cancellation of an additional 440 million euros.
The ministry clarified that these 847 million euros canceled “pertain almost exclusively to the precautionary reserve and were not intended to be spent automatically.” The texts detailing these cancellations “mission by mission, program by program” were sent Thursday evening to the commissions (…)
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