Morocco and France face fiscal and political transitions

Outgoing administrations in Morocco and France are facing significant fiscal and political challenges as they transition power.

In Morocco, the 2027 Finance Bill (PLF 2027) faces difficulties due to a discrepancy in energy assumptions. The budget relies on a Brent crude oil price of $70 per barrel, while market prices have reached approximately $108 amid Middle East tensions. Additionally, the government is ending a practice of using innovative financing—transferring ownership of public assets like hospitals and universities to real estate investment funds—which had generated over 80 billion dirhams between 2019 and 2024 but faced criticism for masking public deficits.

In France, the upcoming presidential election is set against a backdrop of political impasse and financial strain. The country faces rising debt interest costs and a projected 37 billion euros in additional taxes following recent political dissolutions. While presidential candidates agree on protecting European economies from China, they remain divided on energy and environmental policies. Meanwhile, large-scale protests and debates over the 2027 budget highlight the increasing difficulty of governing the nation.