Revenue rose 3.7% and spending 5.4% in the first half, while Fitch downgraded France to A+ from AA− and warned over rising debt, political uncertainty and the lack of a credible fiscal consolidation path.
France's state, or central government, budget deficit widened to EUR 106.8 billion in January-June 2026 from EUR 100.4 billion a year earlier, with the shortfall amounting to just over EUR 107 billion and running 14.4% above plan. General budget revenues rose 3.7% year on year to EUR 184.6 billion, while spending increased 5.4% to EUR 240.5 billion, reflecting higher debt-servicing costs, military expenditure, public energy service charges and new social contribution compensation payments. Net tax revenues, excluding refunds and rebates, rose to EUR 168.5 billion on stronger personal income tax, VAT and other receipts, partly offset by lower energy excise revenue, while non-tax revenue reached EUR 16.1 billion mainly because unused investment funds were returned. Fitch downgraded France's sovereign rating to A+ from AA−, citing a steadily rising debt burden, political uncertainty and no credible fiscal consolidation path. If the second half does not improve, the full-year general government deficit could reach about 8% of GDP, well above the Maastricht Treaty 3% ceiling, while the central government deficit-to-GDP ratio could rise to around 6%, increasing investor scrutiny of eurozone sovereign debt risk.