“France is facing severe financial difficulties with a growing public debt and inadequate control over public accounts. This perception of risk could affect an economy like Portugal, which is also heavily dependent on the French economy,” stated Nazaré da Costa Cabral during a parliamentary hearing on the proposed State Budget for 2026 (OE2026).
She emphasized that there can be no complacency regarding the country’s fiscal and financial situation, which, while not as severe as France’s, still requires caution.
“We have no principled opposition to reducing the tax burden. However, without effective control over the state’s primary current expenditure, it might be imprudent to make structural cuts in public revenue in this complex financial context,” argued the president of the CFP.
The situation in France is identified by the CFP as a potential risk, specifically the potential volatility in the debt market due to the situation in France, which could “exacerbate costs” and have a contagion effect.
On Monday, French Prime Minister Sébastien Lecornu failed to gather all political groups to seek consensus on the 2026 budget, complicating the prospects for his government’s continuance.
