France's economy contracted by 0.1 per cent in the third quarter of 2026, according to early estimates from the national statistics agency Insee, bringing the country closer to recession, Politico Europe reports.
The economy and finance minister, Roland Lescure, blamed this summer's extreme heat and soaring energy prices. He told Franceinfo the figures made it more urgent for parliament to pass the government's 2027 budget, which aims to cut the deficit to 5 per cent of GDP with €43 billion of savings, warning that without it France would "hit the wall".
France's divided parliament failed to agree budgets before the new year in both 2024 and 2025. Prime Minister Sébastien Lecornu may have to force the plan through without a vote, exposing his minority government to no-confidence motions. The economy also shrank in the first quarter and stalled in the second.
Source: Politico Europe
