France Faces IMF or EU Oversight Without Urgent Fiscal Reforms, Warns Budget Minister

France risks losing control over its financial future if it fails to urgently rein in public spending, Budget Minister Amélie de Montchalin warned on Tuesday, raising the specter of potential supervision by the International Monetary Fund (IMF) or European financial authorities.

Montchalin emphasized the urgent need for fiscal discipline as France struggles with widening budget deficits and mounting debt.

“Today, we need to seize the budgetary weapon again, get our house in order, and put it back in order, because if we don’t, others will decide for us,” she said.

The minister’s stark comments reflect growing concerns within the French government and across the European Union about France’s deteriorating public finances. The country’s budget deficit exceeded 5% of GDP in 2024, far above the EU’s 3% threshold.

Montchalin’s remarks come amid pressure from Brussels for France to comply with EU fiscal rules, which are expected to be re-applied more strictly following pandemic-era flexibility.

Analysts say Montchalin’s warning may be intended to galvanize political and public support ahead of difficult budget decisions expected later this year.

The French government has already signaled plans to curb public spending and phase out certain subsidies, but faces political resistance amid inflation and social unrest.