The European Commission has validated the proposed budget plan by French Prime Minister François Bayrou, which is set for approval by EU finance ministers on January 21, 2025.

On January 20, 2025, Brussels officially approved France's new budgetary trajectory under Finance Minister François Bayrou, paving the way for validation by EU finance ministers.

The French government aims to reduce its public deficit to 5.4% of GDP for the current year, following a political crisis that led to the ousting of the previous government.

Despite the commitment to significant savings to lower debt levels, the 2025 efforts are less ambitious compared to the previous administration's plans.

France's public deficit is projected to reach 6.2% of GDP in 2024, marking one of the worst performances among EU countries, second only to Romania.

The long-term goal of the French budget plan aligns with EU recommendations to reduce the deficit below 3% of GDP by 2029.

An EU diplomat noted that the new plan meets the European Commission's requirements, highlighting the Commission's role in monitoring compliance.

European partners, including EU Economy Commissioner Valdis Dombrovskis, have praised France's commitment to fiscal improvement, describing the proposed budget trajectory as ambitious.

In light of trade challenges, the EU is prepared to defend its economic interests while enhancing trade partnerships with countries like Mexico and Malaysia.

Finance Minister Éric Lombard has stressed the importance of addressing the country's debt for future generations while ensuring that economic growth is not hindered.

The European Commission confirmed that France's revised budgetary trajectory complies with EU rules, indicating a favorable assessment amid ongoing scrutiny.

Currently, France lacks an approved budget for the year due to political turmoil and uncertainty regarding potential austerity measures under Prime Minister François Bayrou.