The High Council for Public Finances (HCFP) has described the government's 2027 budget forecasts as "optimistic," echoing its previous assessment of the 2026 budget. The council pointed out that the government's assumptions for 2026 were overly positive, especially regarding investment growth, which was revised from an initial forecast of 2.6% to just 0.1%. The HCFP attributed this discrepancy to external factors, including the international situation and the war in the Middle East, which began on February 28 and was linked to Donald Trump. This conflict led to higher energy prices, which in turn affected economic performance. Amélie de Montchalin, the first president of the Court of Audits, explained that a 10-dollar increase in the price of a barrel of oil would immediately reduce GDP by 0.1 percentage points and cause an additional 0.1 percentage point decline in GDP the following year. Economist Michaël Zemmour, also a member of the HCFP, warned that the government's 2027 growth forecast of 1% is overly optimistic, especially in light of ongoing geopolitical and financial uncertainties. This forecast is higher than estimates from other institutions, such as OFCE, Rexecode, and the Bank of France, which predict growth at 0.7% and 0.9% respectively. The HCFP also noted that the government's projections for private investment are more favorable than current conditions suggest, which could result in a budget deficit of 5.2% or 5.3%, rather than the government's expected 5%. Despite the government's efforts to reduce the deficit, the HCFP acknowledged that rising interest rates are undermining these efforts. France has seen interest rates increase from 3.3% in February 2026 to 4.84% by October 7, 2026, significantly raising the cost of repaying the country's debt. The estimated cost for debt repayment in 2027 is now 12 billion euros, and this could increase further if interest rates stabilize around 5%. A 10% rise in interest rates compared to the previous year would add an extra 4 billion euros to the country's debt burden. The HCFP also highlighted that other areas of public spending, such as pensions, defense, and health, are expected to grow significantly, even after recent government measures. Pensions alone could increase by 9 billion euros, despite the abolition of certain allowances and the deindexing of pensions outside the minimum level. Defense spending is projected to rise by 6.5 billion euros for 2027, and health spending is increasing due to an aging population, adding another 5.5 billion euros. Ministers Roland Lescure, responsible for the Economy, and David Amiel, in charge of Public Accounts, defended their draft budget before the Finance Committee of the Senate.