France cut its 2026 growth forecast to 0.5% from 0.7%, its third downgrade this year, and said its target of reducing the budget deficit to 5% of GDP was no longer achievable. The government has not set a replacement target, while debt-service costs are now expected to reach €65 billion this year, €4.5 billion more than planned. Slower growth and repeated fiscal slippage weaken France’s ability to stabilise debt and add pressure before a difficult 2027 budget process. The risk premium on French 10-year debt over Germany has widened to its highest since 2012, while France’s official 10-year benchmark yield stood at 4.41% on Friday.