France Freezes €5 Billion in Public Spending
France's Minister of State for Public Accounts, Amélie de Montchalin, announced that the government has decided to freeze €5 billion (equivalent to $5.5 billion) in public spending. This measure aims to maintain plans to reduce the budget deficit amidst slowing economic growth and uncertainty caused by U.S. tariffs.
The French freeze includes deferring certain expenditures, reallocating funds, and canceling some planned expenses. De Montchalin described this step as a reaction to "this unstable world," emphasizing the need for flexibility in facing economic challenges.
French Prime Minister François Hollande expressed concerns about U.S. tariffs, which could slow down the French economy, warning of potential job losses and reduced investments. Hollande pointed out that U.S. trade policies could cost France more than 0.5 percentage points of GDP.
The French government is expected to update its growth and deficit forecasts next week when it submits its annual economic planning program to the European Commission.
These developments reflect the challenges France faces amid global trade tensions and highlight the importance of balancing responses to economic crises while maintaining long-term financial stability.
