France's budget deficit is 100 billion euros in the first half of 2025

It's better, but it's still too much. Between January 1 and June 30, 2025, the state's finances recorded a deficit of €100.4 billion, according to data published this Tuesday, August 5, by the Ministry of the Economy. Despite this figure, still above the symbolic €100 billion mark, the deficit in the first half of the year marks a slight improvement of €3.1 billion compared to the same period in 2024.

After two years during which the Ministry of Finance's forecasts have never been met, the news is enough to give one a bit of a breath of fresh air. François Bayrou's government is playing for its survival on the budgetary issue , with the examination of a very sensitive budget project in the autumn, but must also respect the commitments made to the European Union, rating agencies, and therefore the markets. At the forefront of these imperatives is the reduction of the public deficit, which must fall from 5.8% of gross domestic product (GDP) to 5.4%.

To achieve this, the State has notably frozen or cancelled nearly 17 billion euros of credits since the late adoption of the budget on February 6. This measure, along with a reduction in operating costs, has made it possible to reduce public spending by 0.6% despite the 2.4% increase in the wage bill and interest payable on the debt (+6%).

Another encouraging explanation for Bercy is that government revenues increased by 4.2% thanks to the increase in corporate tax revenues (7.9%) and the end of the energy tariff shield. The downside: the French overwhelmingly chose to save, which slowed consumption, and therefore revenues from value-added tax (VAT). The drop in interest rates on the Livret A and the Livret d'épargne populaire savings account on August 1 could remedy this.

While the State spent 44% more than it collected in the first half of 2025, the news represents a small ray of hope for François Bayrou, whose government remains facing the "Himalayas" of the 40 billion euros in savings it is seeking to find in the 2026 budget. And the task still seems far from being accomplished: the plan to reduce public spending presented on July 15 immediately aroused threats of censure on the left and in the National Rally.