The government is preparing new budget cuts to deal with the cost of the war in the Middle East.

The conflict in the Middle East weighs on French public finances. The government is set to announce new cost-cutting measures on Tuesday, April 21, to address the economic downturn.

Published on April 21, 2026, 08:14, Updated on April 21, 2026, 08:14, Reading Time: 3min

[Context: The article discusses the impact of the Middle East conflict on France’s economy and the upcoming announcement of cost-saving measures by the government to tackle the economic challenges.]

[Fact Check: The specific date and time of the publication and the potential duration of the reading are provided for reference.]

Minister of Economy, Finance and Industry Roland Lescure arrives at the Matignon hotel, the official residence of the Prime Minister in Paris, on March 26, 2026. (JULIEN DE ROSA / AFP)

The ongoing war in the Middle East affects public finances, prompting the government to announce new budgetary savings measures on Tuesday, April 21. A strategic meeting is scheduled from 9 a.m. at the Ministry of Economy and Finance: the Public Finances Alert Committee.

This working group brings together parliamentarians, representatives of local officials, social security, unions, and five ministers: Roland Lescure for the Economy, David Amiel for Public Accounts, Jean-Pierre Farandou for Labor, Stéphanie Rist for Health, and Françoise Gatel for Regional Planning.

Two months after the start of the bombings in Iran, the government is evaluating the costs of the war. The financial burden is significant due to the economic slowdown and the impact on public finances. The government has already revised downward its growth forecast for the year to address unexpected expenses.

Cost-cutting measures are necessary, totaling around four billion euros for state expenses and two billion for social security. The government may consider cancelling or freezing credits for various ministries. The committee’s outcome will provide more details on the proposed fiscal strategy to address the economic challenges.