A national audit has said that there is a gap of between €6bn and €10bn in this year's budget if France hopes to reduce the deficit to 4.4% of economic output.
However, next year an even bigger €33bn shortfall has to be tackled if the budget deficit is to be cut to 3% of GDP in 2013.
Clearly tax cuts and revenue boosting measures are going to be necessary, with retiring civil servants not expected to be replaced, and increased taxes on the rich and businesses.
The initial proposals are expected to be outlined today, Tuesday, in a speech given by the prime minister, Jean-Marc Ayrault.
And François Hollande received no help from the rest of Europe as unemployment in the eurozone hit 11.1% in May, the highest since records began in 1995.
With many workers worried about the future there is every chance we could see protests and strike action, similar to that undertaken by pilots of the bombadier aircraft that tackle forest fires.
It is the first time since 1998 that the aircrew in the Bouches-du-Rhône have gone on strike, with workers claiming that funding for maintenance is lacking and that talks between staff and bosses have broken down.
After the French football teams underwhelming performance in Euro 2012, it looks like Didier Deschamps, who quit as manager of Marseille on Monday, could take over from Laurent Blanc as coach of the national team.