France Faces Tsunami of Destabilisation Amid Budget Deficit Struggles

France must urgently reduce its budget deficit to counter global destabilisation factors, including tensions with Russia and U.S. trade policy. Prime Minister Francois Bayrou warns of growing debt issues. Discussions on the 2026 budget aim to address financial challenges without increasing taxes.

France is under pressure to reduce its budget deficit amid rising global instability, driven by factors including Russia's aggression and a trade war fueled by U.S. President Donald Trump. In stark comments, French Prime Minister Francois Bayrou highlighted the nation's vulnerability due to increased debt and larger deficits compared to European counterparts.

Bayrou criticized Trump's policy shifts, particularly in terms of traditional alliances, and emphasized the challenges France faces. The situation has put French diplomacy to the test, with President Emmanuel Macron opting for a more measured diplomatic approach compared to his prime minister.

At a news conference, Bayrou outlined plans to bring forward budget consultations to July 14, aiming to reduce the deficit to 5.4% of economic output. Despite the urgency, Bayrou ruled out tax increases, underscoring reliance on cooperation with Socialist lawmakers for budget approval amid their leadership contest demands.

(With inputs from agencies.)