FX.co ★ France’s Budget Deficit Narrows Sharply in December 2025

France’s central government budget balance showed a marked improvement in December 2025, as the deficit narrowed to -€124.7 billion from -€155.4 billion in November 2025. The latest figures indicate a significant month-on-month consolidation in public finances as the year drew to a close.

The data, updated on 3 February 2026, highlight a roughly €30.7 billion reduction in the budget shortfall over the one‑month period. While the balance remains firmly in negative territory, the December reading suggests some easing of fiscal pressures compared to the deeper deficit recorded in November.

Investors and analysts monitoring France’s fiscal trajectory will view the December move as a notable short-term shift, though the broader assessment of sustainability and policy direction will depend on upcoming releases and whether the improvement proves durable in early 2026.