Prime Minister Sébastien Lecornu is scheduled to present France’s draft 2027 budget on Thursday, outlining a strategy to narrow the national deficit through significant public spending cuts. The government faces a tight deadline of 6 October to formally submit the finance bill to the National Assembly.
Key measures have already been signaled, including pension savings, a freeze on public-sector wages, and reforms to state-funded sick leave. In a mid-September interview with *Le Figaro*, Lecornu detailed plans for roughly €54 billion in cuts, warning that without intervention the deficit could swell to 6.5% of GDP in 2027 — well above the administration’s 5% target. He also noted that rising interest rates and geopolitical pressures would require an additional €10 billion next year.
Among the specific proposals is a reduction in the 10% tax-deduction ceiling for retirees, expected to yield €1.4 billion. Pension indexation limits are also under consideration.
The fiscal backdrop is stark: the 2024 deficit is projected at 5.4% of GDP, one of the EU’s highest, while public debt hovers near 120% of GDP — a record accumulated during President Emmanuel Macron’s tenure that has rattled investors and shaped the political landscape ahead of the 2027 presidential election.
Passage promises to be difficult. Parliament is fragmented, with no clear governing majority, setting the stage for protracted negotiations. Left-wing parties and trade unions have denounced the package as austerity. Socialist Party spokesperson Arthur Delaporte called it a “bitter austerity potion” at odds with Lecornu’s professed willingness to compromise. Unions staged a strike Tuesday in protest, particularly over the public-sector pay freeze.
France has not balanced its budget since 1973. For decades, debt levels above 90% of GDP were sustained by steady growth and ultra-low interest rates — conditions that have now evaporated.