French GDP shrinks as minister urges approval of 2027 budget
Roland Lescure blamed heat and energy prices for the contraction, while the government seeks €43 billion in budget savings.
France’s gross domestic product fell by 0.1 per cent in the third quarter of 2026, national statistics agency Insee estimated. Economy and Finance Minister Roland Lescure attributed the decline to unusually hot summer weather and surging energy prices.
Speaking on 30 October 2026, Lescure urged lawmakers to approve the government’s proposed 2027 budget. It seeks €43 billion in savings and would lower the deficit to 5 per cent of GDP. He argued that approval was needed to restore market confidence and get growth moving again in the final quarter.
The economy had already shrunk by 0.1 per cent during the first quarter of 2026, followed by a quarter without growth. The government’s deficit goal for 2026, at 5.4 per cent of GDP, rested on an expectation of 0.5 per cent economic growth.
Parliament’s divisions prevented budget approval before the start of the year in both 2024 and 2025. Prime Minister Sébastien Lecornu could resort to a constitutional mechanism to enact the budget without a parliamentary vote, exposing his minority administration to possible no-confidence motions. The presidential election scheduled for spring 2027 may make a compromise harder.
