IMF chief warns France will need time to restore market confidence

At the IMF’s annual gathering in Bangkok, Managing Director Kristalina Georgieva warned that France will need a considerable period to lower its debt and deficit to levels that can fully regain trust from both citizens and investors. She acknowledged that the French government is drafting a budget intended to set a downward path for these fiscal indicators, but emphasized that the process will be gradual. The parliamentary examination of the 2027 budget begins this week, yet its passage remains uncertain because of an absent majority and the looming presidential election.

Market concerns are evident as France’s 10-year borrowing cost approaches 5%. Georgieva also called on advanced economies to urgently rebuild fiscal discipline, urging higher revenues, streamlined spending, and better public-finance management. She highlighted that many developed nations have let debt ratios swell since the post-pandemic recovery, increasing vulnerability to future shocks.