France Unveils Cost-Cutting 2027 Budget as Borrowing Costs Rise
The plan targets a 5% deficit by freezing wages and pensions, raising taxes and asking retirees to contribute, as bond costs climb.
- On Thursday, Prime Minister Sébastien Lecornu unveiled a 2027 draft budget proposing €43 billion in spending cuts and tax increases to reduce the deficit to five percent of GDP.
- Facing record debt projected at 121.7 percent of GDP by 2027, France confronts 10-year borrowing costs at their highest level since 2008, forcing the government to sell €340 billion in debt next year.
- The plan targets retirees to contribute €5.5 billion and cuts health reimbursements to save €5.1 billion. VAT increases will raise €7 billion while income tax receipts climb €5.7 billion.
- Opposition parties rejected the budget, with Socialist lawmaker Estelle Mercier stating, "There is absolutely nothing that would allow us to reach a compromise." The Greens called it "completely out of step with the country's economic, social, and environmental situation."
- The budget will be examined in parliament in coming weeks ahead of the April-May presidential election. Lecornu faces the challenge of securing passage without a parliamentary majority, compounding fiscal pressures.
145 Articles
145 Articles
leprogres.fr
lejsl.comSocialist Party (PS) executives today called on Sébastien Lecornu to modify his 2027 draft budget "without delay" to show his "will to compromise", roaring against a "political and moral fault" if he turned to the National Rally.
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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