France's Finance Minister Faces Challenge with New 2025 Budget

French Finance Minister Eric Lombard announced that the new government is working on a 2025 budget plan targeting 50 billion euros in savings. This figure is lower than the previous government's target. The 2025 deficit aims for 5% to 5.5% of GDP, a decrease from the forecasted 6.1% for 2024.

French Finance Minister Eric Lombard has outlined the new government's 2025 budget plan, which seeks to achieve cost savings of 50 billion euros, significantly lower than the previous administration's target. This move comes as a response to the current "serious" budgetary situation.

Lombard aims for a 2025 deficit ranging from 5% to 5.5% of the country's GDP, improving from an expected deficit of around 6.1% in 2024. His experience as the former head of Caisse des Depots is expected to aid him in steering the budget through a divided parliament.

The previous government's failure to pass a budget had caused concerns among investors and ratings agencies. Now, the new target of 50 billion euros in savings is considered a realistic goal in the deeply divided French political landscape.

(With inputs from agencies.)