France to freeze part of its budget due to the fallout from the war in Iran — Reuters
France plans to offset economic losses resulting from the conflict in the Middle East by freezing part of its government spending.
This was reported by Reuters.
According to Economy Minister Roland Lescure and Budget Minister David Amiel, rising energy prices and higher borrowing costs could cost the country between 4 and 6 billion euros.
In particular, additional debt servicing costs are estimated at €3.6 billion.
The government plans to suspend spending in an amount comparable to the expected losses—up to €6 billion.
The Prime Minister is expected to announce new support measures aimed primarily at citizens most dependent on energy prices, particularly those who rely on transportation for work.
The French government emphasizes that due to the high budget deficit, the country can only afford targeted assistance.
French President Emmanuel Macron arrived in Gdańsk to participate in the Polish-French intergovernmental summit and the celebration of Friendship Day between the two countries. This is the first meeting of this level since the signing of the enhanced cooperation agreement in May 2025.
France and Poland are negotiating joint exercises in the field of nuclear deterrence.
