France Unveils Cost-Cutting 2027 Budget as Borrowing Costs Rise
- On Thursday, Prime Minister Sebastien Lecornu unveiled a 2027 draft budget proposing €43 billion in spending cuts and tax measures to reduce the deficit to 5% of GDP.
- Rising borrowing costs and national debt hitting a post-World War Two record of 119% intensified investor pressure on the government to stabilize finances and rein in deficit spending.
- The budget freezes public-sector wages, raises VAT and income tax receipts, cuts health reimbursements by €5.1 billion, and asks retirees to contribute €5.5 billion toward deficit reduction.
- Socialist lawmaker Estelle Mercier stated "there is absolutely nothing that would allow us to reach a compromise," while The Greens called the plan "completely out of step" with social priorities.
- Analysts at ING noted the package will not stabilize public debt, leaving Lecornu to navigate a divided parliament ahead of next year's presidential election with limited fiscal options.
141 Articles
141 Articles
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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