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France Builds 2027 Budget Around Fiscal Restraint
(MENAFN) The French government is preparing a 2027 budget focused on controlling public spending without introducing higher taxes, while considering limits on pension increases for higher-income retirees.
Prime Minister Sebastien Lecornu says many of the planned measures could be reversed by a new parliamentary majority following the upcoming elections. He describes the proposed steps as “difficult” but not “brutal,” emphasizing that they will not amount to “major reforms.”
The government's finance bill is scheduled to be presented on Sept. 30.
Although Paris has not announced a specific deficit target for 2027, Public Accounts Minister David Amiel says the figure cannot be “worse than that of 2025,” when France's budget deficit reaches 5.1% of gross domestic product.
France's economic performance also creates additional pressure on the government's fiscal plans. The economy contracts by 0.2% during the first quarter of 2026 before showing no growth in the second quarter, putting the government's annual growth forecast of 0.7% under pressure.
Lecornu rules out tax increases, arguing that major fiscal choices should instead be left to the government formed after the presidential election.
Government expenditure is still expected to increase, but at a slower rate than inflation. At the same time, authorities plan to shield key sectors from cuts, including defense, which is set to receive an additional €6.4 billion ($7.5 billion), and education, which is allocated another €800 million.
Prime Minister Sebastien Lecornu says many of the planned measures could be reversed by a new parliamentary majority following the upcoming elections. He describes the proposed steps as “difficult” but not “brutal,” emphasizing that they will not amount to “major reforms.”
The government's finance bill is scheduled to be presented on Sept. 30.
Although Paris has not announced a specific deficit target for 2027, Public Accounts Minister David Amiel says the figure cannot be “worse than that of 2025,” when France's budget deficit reaches 5.1% of gross domestic product.
France's economic performance also creates additional pressure on the government's fiscal plans. The economy contracts by 0.2% during the first quarter of 2026 before showing no growth in the second quarter, putting the government's annual growth forecast of 0.7% under pressure.
Lecornu rules out tax increases, arguing that major fiscal choices should instead be left to the government formed after the presidential election.
Government expenditure is still expected to increase, but at a slower rate than inflation. At the same time, authorities plan to shield key sectors from cuts, including defense, which is set to receive an additional €6.4 billion ($7.5 billion), and education, which is allocated another €800 million.
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