France tax burden and growth slowdown, Digi Mart USA News (France): According to a commentary published by Economie Matin, the Governor of the Banque de France no longer believes in his own growth target of 0.4 percent for 2026. The public deficit is heading toward 5.7 percent of GDP, nearly double the European limit of 3 percent.
The article argues that France is officially the most heavily taxed country in Europe, yet its public finances continue to deteriorate. It says growth is struggling to stay below 0.4 percent, a figure the author describes as weak compared with Germany, Switzerland and the Netherlands.
The commentary states that businesses face a gradual rise in local taxes, which it attributes to reporting by Les Echos, and that social charges remain among the heaviest in Europe. The author describes the productive economy as effectively stalled.
The article also addresses the 2027 budget, saying deputies are obstructing debate in the National Assembly and that the revenue section of the finance bill is expected to be rejected. It notes the government may resort to Article 49.3 in due course, and says public debt is approaching 3,200 billion euros, or about 46,000 euros per French resident.
The author further says that fixed household costs such as rent, energy and canteen expenses now represent nearly 30 percent of household budgets, compared with 13 percent in the 1960s. The commentary concludes that France must reform its state spending and regulation rather than rely on additional taxation.
