France Maintains 2029 Deficit Target Amid Growth Downgrades

The French government has reaffirmed its goal to reduce the national deficit to under 3% by 2029 despite lowering growth projections. The updated fiscal plan notably omits specific targets for the next two years, raising questions about the immediate path to consolidation.

• Growth forecasts revised downward for the next three years
• Target deficit set at below 3% of GDP by 2029
• Current annual deficit estimated at 5%
• Lack of specific fiscal targets for the next two years
• Increased risk of pressure on sovereign bond yields