IMF Urges France to Tighten Belt Amid Rising Debt Concerns

The International Monetary Fund (IMF) has issued a stern recommendation for France to address its expanding budget deficit and rising national debt. In an annual assessment, the IMF highlighted the country's struggle to control public finances after increased spending and reduced tax income left a gap.

The IMF projects that France's budget deficit will be around 5.4% but warns it could climb to 6% without further interventions. It stressed the necessity of a comprehensive plan, prioritizing efficient spending and targeted welfare benefits.

Amid political challenges, Prime Minister Francois Bayrou's minority government aims to enact 40 billion euros in budget savings. However, the lack of a parliamentary majority complicates implementing these measures. The IMF predicts slight economic growth, below the government’s expectations.

(With inputs from agencies.)