The French financial watchdog warned that the economic assumptions on which the government's draft 2027 budget is based are “optimistic”, which poses a risk to plans to reduce high fiscal deficits. The French government submitted a fiscal bill to the cabinet earlier on Thursday. The economic growth rate is expected to accelerate from 0.5% in 2026 to 1%, and plans to reduce the fiscal deficit from 5.4% to 5% of GDP. The French Higher Committee for Public Finance, an independent agency responsible for overseeing public finance, said that these predictions assume a significant recovery in private investment, but the sharp rise in French sovereign borrowing costs may be transmitted to the financing environment for businesses and households. The agency also said it was not possible to conduct an in-depth analysis of all proposed tax and expenditure adjustments due to limited time and information provided by the government.

Disclaimer:Webull uses external vendor Google Translation Service for news translations where we endeavour to ensure these are correct, however, we recommend that you please double-check this information accordingly. Webull is not responsible for translation errors or issues.