France Warns of Major Fiscal Strain from Ongoing International Crisis
“The cost of the war is now estimated at around $6.4–$7 billion for public finances,” David Amiel said, adding that more than $4.0–$4.2 billion is linked to rising interest rates and inflation.
Amiel said the figure reflects both direct and indirect economic effects of the current geopolitical situation.
He said rising interest rates, which he described as a global trend across developed economies, have significantly increased France’s debt servicing costs.
“Interest rates are increasing, in France as in all developed economies,” he said.
The government also pointed to broader pressures from slower growth and higher inflation forecasts compared with pre-crisis expectations.
The remarks followed a Cabinet review of France’s 2025 public accounts, which showed the deficit narrowing to 5.1% of gross domestic product from 5.8% in 2024.
Officials said the improvement was driven by budget control measures but warned that geopolitical developments continue to cloud the fiscal outlook.
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