France Unveils 2027 Budget With 54 Billion Euro Savings Plan

The French government presented its 2027 budget proposal on Thursday, aiming to cut the public deficit to 5% of GDP through 54 billion euros in total savings. Of this amount, 43 billion euros come from new measures announced in the draft finance and social security bills.

Key measures include freezing family allowances, introducing a tax on sugary products, and ending certain renewable energy subsidies. The plan also extends a differential contribution on high incomes and reduces the number of civil servants.

“The real is catching up with us.”

Pensions face significant restraint, with the government seeking 5.5 billion euros in savings by slowing the automatic rise in retirement spending. Pensions above 1,260 euros per month would be de-indexed or under-indexed, yielding 4.1 billion euros.

Prime Minister Sébastien Lecornu warned that rising debt costs are catching up with France, as 10-year borrowing rates hit 4.77%, near the 2008 financial crisis peak. The Independent High Council for Public Finances called the government's 1% growth forecast for 2027 optimistic.

Opposition parties reacted sharply, with Socialists denouncing a lack of outreach and Greens threatening a censure motion. The bills now head to Parliament for tense debates seven months before the presidential election.