France: 2025 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for France

Author: International Monetary Fund. European Dept.

Volume/Issue: Volume 2025 Issue 179

Publication date: July 2025

ISBN: 9798229016780

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Topics covered in this book

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Finance , Labor , Economics- Macroeconomics , Public Finance , FATF report , state aid , consultation-press release , executive board assessment , Medium-Term Fiscal Structural Plan , Anti-money laundering and combating the financing of terrorism (AML/CFT) , Fiscal consolidation , Labor markets , Europe , Global

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Summary

The French economy has demonstrated resilience in 2024 despite high uncertainty, bolstered by the summer Olympics in Paris. The disinflationary process is progressing well, and the labor market remains robust. However, high and rising public debt, combined with significant domestic and external headwinds to the recovery, highlights the urgent need to strengthen public finances and pursue structural reforms to foster sustainable growth. While the political compromise on the 2025 budget reached in February marked a positive step forward, it will be essential for the authorities to continue building consensus to further advance fiscal and structural reforms.