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The
audit office, known as the Cour des Comptes, reiterated it was
vital for France, the euro zone's second biggest economy, to
reduce its public deficit.
"Due to delays in making real structural reforms, the cost of
public debt, which has been exacerbated by recurring deficits
and the weight of these deficits, has become more and more
expensive," it said.
This "has hampered other spending, hinders the ability to make
investments and leaves the country dangerously exposed in case
of a new macroeconomic shock," it added.
It said France's public financing programs did not adequately
take into account costs linked to policies aimed at protecting
the environment, such as using more renewable energy.
Last month, the European Commission said France and six other
countries should be disciplined for running budget deficits in
excess of EU limits, with deadlines for reducing the gaps to be
set in November.
France had a budget gap of 5.5% of gross domestic product (GDP)
in 2023, up from 4.8% in 2022 and above the EU's deficit limit
of 3%.
French public debt was 110.6% of GDP in 2023. The EU Commission
expects this to increase to 112.4% this year and to 113.8% in
2025 while the EU limit is 60%.
President Emmanuel Macron's government has pledged to meet the
EU's deficit limit of 3% by 2027, but the outlook has been
complicated by this month's parliamentary election which
resulted in a hung parliament.
Credit rating agencies Moody's and S&P Global have warned of
negative impacts on the French economy from the political
deadlock, where no political party won an outright majority.
(Reporting by Sudip Kar-Gupta; editing by Jason Neely)
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