French Prime Minsiter Sebastien Lecornu has asked the government to find €4 billion in additional savings to cover the costs of the war in the Middle East, which Finance Minister Roland Lescure estimates will cost France between €4 and €6 billion.
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In a letter to ministers sent Tuesday, Lecornu outlined the need for fiscal measures, estimating the war’s cost to France at €billion.
Lescure, speaking to French radio station RTL Tuesday, estimated the cost of the war to be between €5 and 6 billion.
Over half of the amount, €3.6 billion, is linked to servicing the national debt which “is rising because interest rates have increased”.
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He was speaking ahead of a meeting of the public finances alert committee, which may decide on further austerity measures in response to the economic impact of the war.
“We are not going to cancel anything, but we may need to take precautionary measures, technically called a freeze,” he said. “We freeze spending that we can later unfreeze if things improve.”
The government has already revised down its economic growth forecast to 0.9 percent in 2026 (down from one percent), and raised its inflation forecast from 1.3 percent to 1.9 percent, though it is maintaining its target of five percent deficit and its commitment bringing it down below three percent by 2029, as required by the European Union.
Lecornu is expected to announce measures to help consumers deal with higher energy prices on Tuesday evening.
(with newswires)
