France’s Finances on Path to Repair as State Deficit Narrows

France reported the narrowest gap in the central state’s finances since the Covid pandemic, indicating the country is on track to meet or even surpass its fiscal targets.

The core state budget deficit declined to €124.7 billion ($148 billion) in 2025 from €156.3 billion the previous year, the finance ministry said. That result was €14.3 billion tighter than the initial objective in the budget bill.

While Monday’s figures don’t include the social security system or local government finances, they indicate better-than-expected progress toward reining in the deficit amid repeated government collapse since 2024 elections.

The ...