France cuts 2026 growth forecast to 0.5%, warns of austerity budget

Bercy slashes its 2026 GDP growth forecast from 1% to 0.5% and projects 1% for 2027, signaling a sharp fiscal tightening. Budget Minister Roland Lescure warns 'no more fat' and calls for a 'shared' effort while shielding some business measures. The move signals a pivot to austerity amid weak growth, raising risks of political friction and market concerns over France's fiscal trajectory.