To confront the difficult economic repercussions of the war in the Middle East, the French government decided to take a package of measures, most notably freezing spending and providing support to low-income families and sectors that were greatly affected by this crisis. These measures are expected to cost the government of Sebastian Lecorno between four and six billion euros.

Published on: 04/22/2026 - 08:57 Last updated: 04/22/2026 - 13:14

The French government decided to fully compensate for the economic repercussions resulting from the Iran war by freezing some spending, as it announced on Tuesday, while at the same time preparing to launch a new round of support measures.

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In this regard, Finance Minister Roland Lescure said that the sharp rise in energy prices and the increase in bond yields since the outbreak of the war on Iran is expected to cost the government between four billion euros ($4.7 billion) and six billion euros, with the increase in borrowing costs representing 3.6 billion euros of this amount.

“In the face of these six billion euros that we expect the crisis will cost us, we will freeze spending worth six billion euros,” Budget Minister David Amiel told reporters after a meeting with MPs.

Neutralize the impact on the budget and support families and some sectors

Prime Minister Sebastian Lecornu's government has pledged to neutralize the budget impact of measures to help households cope with the energy price shock caused by the war, but it faces mounting pressure to provide more support.

Locorno announced an increase in emergency fuel subsidies for the fishing and agricultural sectors, as well as support for small construction companies and perhaps taxi drivers as well.

Plans are currently being prepared to support another three million people with limited income who use their cars for work purposes. Locorno told reporters, "Our philosophy is to ensure that our economy continues to grow strongly and that sectors that depend in particular on fuel are not negatively affected."

Lescure said that France, which suffers from a budget deficit that is among the largest in the euro zone economies, can only afford measures specifically directed to support the most needy groups.

Meanwhile, the government is facing pressure from the far-right movement to significantly reduce the 20 percent value-added tax on fuel, while the far-right movement called for the imposition of a maximum limit on energy prices.

France 24/Reuters

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