France Unveils Cost-Cutting 2027 Budget as Borrowing Costs Rise
The plan seeks to cut the deficit to 5% of GDP as bond yields hit their highest level since 2008, officials said.
- On Thursday, Prime Minister Sebastien Lecornu unveiled France's 2027 draft budget, targeting a 5% deficit reduction through €43 billion in spending cuts and tax increases amid mounting debt pressure.
- France's public debt is projected to hit 121.7% by 2027, far exceeding the 60% EU limit, while student protests over poor conditions have closed more than 160 schools this week.
- The proposal includes €5.1 billion in health sector savings and asks retirees to contribute €5.5 billion, while net tax revenue rises €18 billion to €375 billion, though corporate tax revenue falls €1.8 billion.
- Socialist lawmaker Estelle Mercier rejected the proposal, stating, "In this budget, there is no outstretched hand," while the Greens labeled it "completely out of step with the country's economic, social, and environmental situation."
- Parliament will examine the budget bill in coming weeks ahead of April-May presidential elections, where far-right leader Marine Le Pen currently leads in polls amid uncertainty over President Emmanuel Macron's centrist legacy.
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139 Articles
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.
The Local - Fr
coastaltvnews.comFrance unveils cost-cutting 2027 budget as borrowing costs rise
The French government has defended plans to cut spending and raise taxes as it tries to thread the needle between jittery debt markets and public discontent over the rising cost of living.
With €43 billion in new recovery measures, the government wants to reduce the deficit to 5% of GDP in 2027. But the High Council for Public Finance is alerting to a fragile trajectory while...
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