France warns of economic impact of Ukraine, Middle East wars on households

French Prime Minister Sebastien Lecornu said Wednesday that the wars in Ukraine and the Middle East are increasingly weighing on household finances and the broader economy.

"We must not hide from the French people the impact of the two wars we are experiencing, Ukraine, on the one hand … and the Middle East, on the other," Lecornu told the Senate.

He said the longer the conflicts persist, the more their effects are felt "particularly in the wallets of the French people and, more broadly, across our entire economy."

Describing the situation as "a price crisis," Lecornu said it is being driven by imported inflation rather than production shortages, with disruptions to maritime transport and stalled negotiations pushing market prices higher.

"This is a crisis affecting maritime transport … negotiations … are stalling and making little progress," he said.

He also addressed debate over profits in the energy sector, cautioning against criticism of TotalEnergies while raising the issue of redistribution.

"If there are exceptional profits, it raises the question of redistribution," he said, adding that the issue should be approached objectively.

Lecornu warned the crisis would continue.

"The crisis we are experiencing is serious and it will last," he said.

He stressed that the government "will not abandon anyone," adding that targeted support measures would continue for affected sectors.