Brussels (Brussels Morning Newspaper) – France’s new Minister of Finance Lombard presents the new budget to the Eurogroup on January 20, 2025.
The Eurogroup meeting brought together for the first time in 2025 the ministers of finance of the twenty countries adopting the euro. Also attending the meeting was Vladis Dombrovskis, European Commissioner for Economy and Productivity and European Commissioner for Implementation and Simplification.
The main item on the agenda was discussing the priorities and challenges in the new European policy cycle – also in light of Trump’s second term in the US, as many ministers told the press right before the meeting.
At the summit, chaired by President Paschal Donohoe, the new French minister for Economic Affairs and Finance, Eric Lombard, together with the new Lithuanian Minister of Finance, Rimantas Šadžius, were invited to illustrate the priorities of their governments.
One of France’s top issues is the 2025 budget, which didn’t come through at the end of last year because of a no-confidence motion that caused PM Barnier’s government to collapse. The new government that followed, led by François Bayrou, partially renegotiated it to try to have it approved by the end of January 2025.
Lombard’s task: save France’s economy without worrying the EU
Eric Lombard was appointed Minister of Economy, Finance, Industrial and Digital Sovereignty on December 23, 2024 by President Macron. He attended his first Eurogroup meeting today, and he insisted on three general points on the future of the EU: protect the industries, develop trade and adapt to new technologies, including artificial intelligence.
Lombard also presented France’s new budget. Given the political instability that the topic caused in the country, this is a relevant item on the agenda. Before the meeting, he commented on it to the press.
We will explain the situation of France’s budget and I will introduce the situation in France to my colleagues. We are determined to reach the 3% deficit target by 2029. The first year of this adaptation plan will be this year, 2025, when we are going to pass the French Parliament target of 5.4%.
On top of all of this, it is important that France keeps supporting the development of the European economy as well, added Lombard.
How did the Eurogroup respond to it?
At the press conference after the Eurogroup meeting, Commissioner Dombrovskis said he is pleased with France’s plan.
We welcome the commitment of the French minister to reduce France’s general government deficit,
he said.
It is good news that it adjusted its fiscal trajectory, as presented by french authorities last week, and it preserves the same ambitious level of overall fiscal efforts over the adjustment period.
