France’s government seeks 2027 budget to curb deficit as debt-market pressure mounts
Economy Minister Roland Lescure urged parliament to pass a 2027 budget targeting a public deficit of 5% of GDP, while denying France was caught in a debt “snowball”. The plan includes €43 billion ($48 billion) in spending cuts, but opposition parties object to measures including lower healthcare spending and limits on pension increases, as the government tries to reassure bond markets.
Bottom line — The government is targeting a 5% deficit in 2027, but lacks a parliamentary majority to pass the budget through normal procedures.
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Lescure said French bond rates had reached 4.5% in recent days and forecast an average of 2.5% in 2027.
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The government proposes reducing the social security deficit to €12–13 billion next year.
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Under the plan, pensions above €1,260 a month would no longer be fully adjusted for inflation.
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AFP reports that the government could use a constitutional power to pass the budget without a vote, as it did last year.
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Bruegel analysts argue that more market pressure may be needed before France’s political system accepts delayed reforms.