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IMF urges France to make emergency budget repairs

Original: fmi

The IMF's managing director has called on France to carry out an 'urgent' fiscal correction, adding pressure as French politics remain deadlocked over the budget. Bank of France governor François Villeroy de Galhau has reminded politicians they can use tools like Article 49.3 to pass a budget without a majority. Separately, the IMF raised its 2026 global growth forecast and warned that AI's impact on economies is advancing like a slow-moving tsunami.

Why now: The IMF's warning lands amid France's ongoing budget standoff and lack of a parliamentary majority.

IMFFranceBank of France

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