“All European institutions are watching” the situation in France, says Lagarde (ECB)
Paris – “I believe that all European institutions are closely watching the current developments and are hoping that paths will be found to meet international commitments, particularly regarding budget submissions,” said ECB President Christine Lagarde when asked about the subject during an event in Paris organized by Business France.
The resigning Prime Minister Sébastien Lecornu met with political forces on Tuesday for “final negotiations” on the 2026 budget, as requested by President Emmanuel Macron.
His hasty departure jeopardizes the timely adoption of a budget, which is supposed to be submitted to Parliament by October 13 at the latest for review.
Sébastien Lecornu aimed to reduce the public deficit to 4.7% of gross domestic product (GDP) in 2026, and to a maximum of 3% in 2029, which is in line with European requirements.
In the face of political uncertainty, economic circles are concerned about a downturn. The president of the leading employers’ organization Medef, Patrick Martin, expressed his “anger” on Tuesday. (October 7, 2025)
