While much speculation surrounds the contents of UK Chancellor Reeve’s first Budget on October 30th, the budget presented by the new French Government highlights the fiscal constraints facing some of Europe’s largest economies. Prime Minister Barnier’s draft 2025 budget includes significant cuts worth over €60bn or 2% of GDP, weighted two-thirds towards spending cuts and one-third in tax increases. The measures include tax hikes on corporates and high earners, alongside reductions in welfare spending. However, total spending is still expected to rise next year, highlighting the fiscal challenge facing the Government. France’s budget deficit, expected at 6% of GDP by end-2024, is among the largest in the Eurozone, with the Budget expected to trim this to 5% by end-2025, supported by modest growth in GDP.