Zero growth, expensive oil and record borrowing rates: the 2027 budget deemed less and less credible

The 2027 budget proposal in France faces rapid obsolescence just a month after its presentation due to disappointing economic indicators. With zero growth, high oil prices, and record borrowing rates, the government's assumptions for economic recovery are challenged. The French economy is stagnating, as acknowledged by Economy Minister Roland Lescure, following a 0.1% decline in GDP in the third quarter. This situation complicates public finance management, with lower-than-expected revenues and higher expenditures. An anonymous senior official suggests that the credibility of the budget proposal is now in question.