Investing.com – French Prime Minister Francois Bayrou warned on Tuesday that France must urgently reduce its budget deficit to withstand a “tsunami of destabilisation,” citing geopolitical threats from Russia and the economic disruption triggered by U.S. President Donald Trump’s escalating trade war.
“The president of the United States has started a hurricane whose consequences will not end any time soon,” Bayrou said at a news conference in Paris.
He said Trump’s decision to impose sweeping tariffs and confront longstanding allies has “shattered trust around the world” and intensified economic volatility. Bayrou’s unusually sharp remarks come as the French government prepares to enter contentious negotiations over its 2026 budget.
“As if war weren’t enough, a tsunami of destabilisation came to shake up the planet,” Bayrou said. He pointed to what he called a “reversal of alliances that no one could have imagined,” referencing Trump’s treatment of Ukrainian President Volodymyr Zelenskiy during a tense Oval Office meeting in February.
France’s fiscal trajectory has drawn increased scrutiny in Brussels. The government aims to cut the deficit to 5.4% of GDP this year, a first step toward meeting the European Union’s 3% ceiling by 2029. Bayrou acknowledged that France’s public spending remains high and out of step with European peers.
Bayrou said consultations with lawmakers and stakeholders on the upcoming budget would be accelerated, with proposals to be presented by July 14, France’s national holiday, instead of the traditional September timeline.
He ruled out raising France’s already heavy tax burden but offered few specifics on spending cuts, saying only that the discussions would aim to “define a credible path forward.”
The Socialist Party, currently in a leadership transition, has threatened to withdraw support from Bayrou’s government unless efforts to reduce the deficit include contributions from France’s wealthiest citizens. Without their backing, the government could face a budget impasse.