France plans €54 billion savings drive as protests grow
- On Thursday, Prime Minister Sebastien Lecornu announced a €54 billion savings drive in the 2027 budget to stop the fiscal deficit spiraling out of control amid growing protests over high fuel prices.
- Finance Minister Roland Lescure acknowledged last Friday that Middle East crisis fallout caused the government to miss its 5% fiscal deficit target this year, with the 2027 deficit exceeding 6.5% of GDP without cost-saving measures.
- Labor unrest escalated as workers from the power sector to the police struck on Tuesday, while fishermen lifted Mediterranean port blockades on Thursday after three days of protesting high fuel costs.
- Marine Le Pen said on Wednesday the RN would likely vote against the budget, citing policy disagreements, while Socialist lawmakers have ruled out support, leaving the budget's fate uncertain in a deeply divided parliament.
- With a presidential election looming next year, Lecornu's government races to finalize the budget bill as bond market pressure mounts, aware that his two predecessors were toppled over previous budgets.
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74 Articles
France plans €54 billion savings drive as protests grow
France's government plans to include a €54 billion savings drive in its 2027 budget to stop the fiscal deficit spiralling out of control, Prime Minister Sebastien Lecornu said on Thursday as he faced growing protests and pressure over high fuel prices.
The French government plans to save EUR 54 billion in the budget for 2027.
France closed 2025 with a deficit of 5.1%, above the 3% limit set by the rules for euro area countries, and a public debt of almost 3.5 trillion euros (115.7% of GDP). In addition, its central bank reduced the country’s growth forecast to 0.4% by 2026. “The Finance Bill will contain a fiscal effort of around 54 billion euros,” Lecornu said in an interview with Le Figaro newspaper, warning that “if this budget did not include any savings measures…
The kidney attack attempted by the Prime Minister reflects the country's extreme financial fragility. In an interview with the Figaro, Sébastien Lecornu announced a turn of view on the budget... The article Budget Lecornu: a balancing exercise that remains far from balance has appeared first on current values.
French Prime Minister Sebastien Lecornu has announced plans to cut public spending by 54 billion euros in the 2027 budget. The goal is to reduce the budget deficit to 5% of GDP. Lecornu stressed that this is not austerity, but a “necessary recovery” of finances, although the measures include a freeze
The Financial Times reports that France's minority government is preparing a budget for next year, which foresees major cuts. Most likely, this plan will go against the parliamentary majority, which may lead to the collapse of the government.
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