France Beats Deficit Target, Giving Leeway in Energy Crisis (2)

France beat its 2025 deficit reduction target, giving the government some margin for maneuver as the fallout from the Iran war casts a cloud over plans to keep repairing public finances.

The fiscal gap of the euro area’s second-largest economy narrowed to 5.1% of economic output from 5.8% in 2024, well below the government’s 5.4% objective, data from Insee on Friday showed.

The result is a significant relief for Prime Minister Sebastien Lecornu after his months-long struggle to get a 2026 finance bill through a divided parliament without being forced to resign, like his two predecessors. ...