France's budget deficit reaches €106.8B in first half of 2026

France's state budget was executed with a deficit of €106.8 billion in the first half of 2026, up €6.4 billion, or 6.4%, from the same period last year, Report's European bureau informs, citing data published by France's Ministry of Public Accounts on August 4.

According to estimates, the increase in the deficit reflects continued difficulties in restoring public finances after two years of deteriorating budget indicators.

Reuters also said the French government risks missing a key target of keeping the general government deficit at 5% of GDP in 2026.

In July, Finance Minister Roland Lescure acknowledged that achieving the target would be difficult after the economic growth forecast was downgraded.