France Unveils Cost-Cutting 2027 Budget as Borrowing Costs Rise
The plan targets the deficit with higher taxes on retirees, wage freezes and 43 billion euros in savings as bond yields climb.
- On Thursday, Prime Minister Sébastien Lecornu's government presented a draft 2027 budget proposing €43 billion in spending cuts and tax increases to shrink the deficit to 5 percent of GDP.
- France's national debt reached a record 119 percent of output, with ministry projections showing it could hit 121.7 percent by 2027, forcing the government to sell €340 billion in debt next year.
- The measures include asking retirees to contribute €5.5 billion and cutting €5.1 billion from health reimbursements, triggering strikes and student blockades across the country.
- Socialist lawmaker Estelle Mercier denounced the proposal, claiming "In this budget, there is no outstretched hand" for compromise as the government navigates a divided parliament.
- Upcoming April-May presidential elections where far-right leader Marine Le Pen currently leads heighten fiscal urgency, as bond investors scrutinize the government's ability to rein in deficit spending amid political volatility.
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The project would reduce the Ministry's resources by $49,381 million.
leprogres.fr
lejsl.comSocialist Party (PS) executives today called on Sébastien Lecornu to modify his 2027 draft budget "without delay" to show his "will to compromise", roaring against a "political and moral fault" if he turned to the National Rally.
The French government intends to save 43 billion euros in budget funds, according to the draft budget for 2027. With this austerity program, the government aims to reduce the high budget deficit and restore confidence in financial markets. Specifically, it proposes a freeze on public sector wages and most pensions. In addition, cuts are planned for municipal budgets and healthcare spending, as well as a reduction in tax breaks for businesses, AR…
Paris. Corrugated by a record public debt and a few months after the presidential election, the French government presented yesterday a draft budget for 2027 that contemplates a fiscal adjustment of 54 billion euros.
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