The president of the Public Finance Council (CFP) warned this Thursday, 6th, that the French Republic’s perception of risk could infect an economy like the Portuguese, and therefore one should not be “relaxed” regarding the budgetary situation.
“France is in a situation of great financial difficulty, it has a huge public debt that continues to grow, it has not had the capacity to control public accounts and the risk perception of the French Republic could be contagious to an economy like the Portuguese one, which is also very dependent on the French one”, said Nazaré da Costa Cabral, in a hearing in parliament, within the scope of the State Budget proposal for 2026 (OE2026).
The official stressed that one cannot “be restful or relaxed in relation to the budgetary and financial situation” of the country, which despite everything “is not as strong as France”.
“We have nothing against reducing the tax burden, in principle, but as long as we do not have effective control over the behavior of the State’s primary current expenditure, it may be imprudent in this complex context, even from a financial point of view, to make structural reductions in public revenue”, also defended the president of the CFP.
The situation in France is one of the risks identified by the CFP, namely the possible volatility in the debt market with the situation in France, which could “increase costs” and have a contagion effect.
This Monday, French Prime Minister, Sébastien Lecornu, was unable to bring together all political groups to seek a consensus on the budget for 2026, complicating the scenario of his executive remaining in office.