Business · Economy · 3 hrs ago
IMF chief says France needs time to rebuild market confidence
IMF chief Kristalina Georgieva says France needs time to rebuild market confidence by reducing its debt and deficit.
France is considering a 2027 budget intended to put both on a downward path.
The budget aims to bring the deficit to 5% of GDP next year, but its passage is uncertain because the government lacks a majority.
France’s 10-year borrowing rate is nearing 5%, amid concerns about its economic and political stability.
High borrowing costs make it harder for governments to finance their debt and can also put pressure on developing economies.
Georgieva urged developed countries to increase revenue, control spending and manage public finances better.
France’s lawmakers now have to decide whether to approve the budget, though the sources do not say when that decision will be made.
IMF Managing Director Kristalina Georgieva said France will need time to bring its debt and deficit to levels that inspire full confidence among markets and the public.
France is seeking to adopt a 2027 budget that would put debt and the deficit on a downward path.
The budget’s adoption is uncertain because the government lacks a majority and a presidential election is approaching.
France’s 10-year borrowing rate is approaching 5%, amid concerns about its economic and political stability.
Georgieva also urged developed economies to restore budget discipline as government debt yields rise.
- Who
- Kristalina Georgieva, managing director of the International Monetary Fund, and the French government.
- What
- Georgieva said France would need time to rebuild confidence by lowering its debt and deficit.
- When
- Georgieva made the remarks on October 14, 2026; examination of the 2027 budget began on Tuesday.
- Where
- Georgieva spoke in Bangkok, Thailand, on the sidelines of the IMF’s annual meeting; the budget is being examined by France’s National Assembly.
- Why
- France’s debt and deficit need to move to levels that inspire confidence, while uncertainty over its economic and political stability is weighing on market confidence.
This story does not have two clearly opposing sides.
Examination of France’s 2027 budget began in the National Assembly.
Georgieva said in Bangkok that France would need time to bring its debt and deficit to levels that inspire confidence.
- IMF managing director
- Kristalina Georgieva
- Budget year
- 2027
- Budget deficit ambition
- 5% of GDP next year
- French 10-year borrowing rate
- Approaching 5%
- Statement location
- Bangkok, Thailand
3 sources
IMF head says reducing France's debt burden will 'take time'
Budget de la France : "Il faudra du temps" avant de retrouver "l'entière confiance" des marchés, estime la cheffe du FMI
La France cherche à réduire son déficit et sa dette, il lui "faudra toutefois du temps pour les ramener à des niveaux susceptibles d'inspirer confiance" aux marchés, met en garde le FMI
What people are saying
Il faudra toutefois du temps pour les ramener à des niveaux susceptibles d'inspirer confiance, une entière confiance, tant à la population qu'aux investisseurs
La France cherche actuellement à adopter un budget qui placerait son déficit et sa dette sur une trajectoire descendante
Il faut réparer d'urgence les fondations budgétaires avant que les fissures ne s'élargissent.