France May Miss 2025 Deficit Target as Trade War L...

France May Miss 2025 Deficit Target as Trade War Looms

French Minister for Economy, Eric Lombard

Zim Now Writer

France’s Finance Minister Eric Lombard has indicated that the country may allow its 2025 budget deficit target to slip if the escalating trade tensions with the United States hurt economic growth.

Speaking to BFM TV, Lombard ruled out additional spending cuts or tax hikes, saying such measures could harm the economy further.

This comes after U.S. President Donald Trump imposed 20% tariffs on EU imports, with harsher terms on certain French territories.

If these tariffs remain, France could face reduced revenue and GDP, pushing the deficit higher than the targeted 5.4% of GDP—already one of the highest in the EU.

The government had projected 0.9% growth for 2025, but that outlook may be revised downward later this month. France aims to meet the EU’s 3% deficit ceiling by 2029, but may struggle, especially as it continues to carry one of the EU’s heaviest debt loads.