France freezes 3.2 billion euros in credits to offset Middle East conflict costs

The government announced Thursday budget freeze measures to meet its 6 billion euro savings commitment, without providing all details.

Bercy confirmed the freeze of 3.2 billion euros in credits in the 2026 budget. This follows a commitment made more than a month ago to slow public spending by 6 billion euros due to the impact of the conflict in the Near and Middle East.

In the social sphere, the freeze on general charge reductions, announced last week by David Amiel, is expected to generate 2.2 billion euros. About 4 billion euros in cuts concern the state budget, with two decrees due by the end of the week.

The canceled credits come mainly from the precaution reserve. The remainder, 3.2 billion euros, corresponds to a “surgel” whose contours remain imprecise. These measures will be examined by the Parliament’s finance commissions in the coming days.

Bercy indicated that the next alert committee at the end of June will allow reassessment of the crisis’s impact on public finances.

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Government allocates 70 million euros to sectors hit by fuel price surge

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The French government announced a 70 million euro support plan on Friday evening for road transporters, fishermen, and farmers hit by energy price hikes from the Middle East conflict. Valid for April and renewable monthly, it provides targeted sectoral aid without worsening the public deficit. Sector reactions are mixed.

The prime minister announced on Tuesday at the National Assembly a possible revision of credit freezes planned to cover costs from the Middle East war.

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German Finance Minister Lars Klingbeil (SPD) detailed specific savings targets for the 2027 federal budget at a press conference in Berlin. The measures aim to close a 111 billion euro financing gap. The largest cuts target pensions at four billion euros.

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