Paris – ECB President Christine Lagarde stated, “I believe that all European institutions are closely monitoring the current developments and are optimistic that solutions will be found to fulfill international commitments, especially regarding budget submissions,” during an event in Paris hosted by Business France.
Resigning Prime Minister Sébastien Lecornu engaged with political factions on Tuesday for “final negotiations” concerning the 2026 budget, following a directive from President Emmanuel Macron.
Lecornu’s abrupt exit poses a risk to the timely passage of the budget, which must be presented to Parliament by October 13 at the latest for evaluation.
His goal was to decrease the public deficit to 4.7% of gross domestic product (GDP) in 2026 and to a maximum of 3% by 2029, aligning with European standards.
In light of the political instability, economic leaders are worried about a potential downturn. Patrick Martin, president of the prominent employers’ organization Medef, expressed his “anger” on Tuesday. (October 7, 2025)
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