French deficit plans are a "minimum", fiscal watchdog says

The French ​government's deficit reduction plans in ​its 2027 budget ‌represent a ​minimum effort in light of the challenge of getting the finances ‌back on track, the independent fiscal watchdog said on Thursday. The High Council for the Public Finances, which is ‌charged by law with determining whether the government's fiscal ‌plans stack up, said the deficit target for this year of 5.4% of economic output was "plausible" though it could still be ⁠missed.

Plans to ​reduce the ⁠deficit next year to 5% of output are "limited", the watchdog ⁠said after the government presented its 2027 budget, adding a "significant" ​effort was needed to stabilise France debt. "The High Council ⁠firmly reiterates that the deficit reduction target set for 2027 ⁠is ​a minimum given the alarming state of public finances," it said in its review of the ⁠budget bill.

It also said that the government's forecast for economic growth of ⁠1% ⁠next year is "optimistic", especially if concern about the belt-tightening effort grow and weigh on ‌the ‌outlook.