France's budget deficit is projected to reach 5.6% of GDP this year, significantly above the targeted 5.1%, and could rise to 6.2% by 2025 if substantial savings are not identified, according to the finance ministry. This alarming forecast comes amid a political crisis, with President Emmanuel Macron struggling to form a new government following inconclusive elections. The deficit is exacerbated by a shortfall in tax revenues, including value-added sales tax and income tax, alongside rising local government expenditures. The outgoing administration has proposed measures to freeze spending at current levels rather than implementing cuts, while facing scrutiny from the EU for exceeding budget limits. As the government prepares a budget that needs to be submitted to parliament by October 1, it remains under pressure to comply with EU rules that require a deficit below 3% of GDP. The fiscal challenges could complicate France's growth plans, despite ongoing advancements in the nuclear and renewable energy sectors.