Budget Deficit

The French state recorded a deficit of 125 billion euros in 2025, a 31.6 billion drop from 2024, thanks to robust tax revenues, Bercy announced on February 3. This improvement, the strongest since 2020, still hides ongoing debt pressures. Public spending remained steady, while revenues exceeded forecasts.

January 14, 2026 Iniulat ng AI

The National Assembly restored inflation indexing for all income tax brackets on Wednesday, opposing the government's proposed freeze. This aims to prevent an additional 200,000 households from becoming taxable in 2026. Yet, its final adoption remains uncertain amid tense budget negotiations.