French Prime Minister Sébastien Lecornu said he was seeking to implement measures worth $62.1 billion (€54 billion) to rein in the 2027 budget, as part of efforts to slow the growth of public spending and curb the budget deficit.
Lecornu said the budget deficit would have approached 6.5% in 2027 if measures to deliver spending savings had not been taken, pledging not to raise taxes as part of the fiscal consolidation plan.
Slowing spending growth
It is a major adjustment, as these savings will significantly slow the pace of spending after it rose year after year without interruption
Lecornu said budgetary pressure was necessary to curb government social and local spending, as well as to address rising borrowing costs.
Political divisions over the 2027 budget
Marine Le Pen, leader of the National Rally, left open the possibility of voting to bring down the government over disputes related to the 2027 budget, but said she did not want to take steps that would increase pressure on France’s public finances.
The budget dispute comes ahead of France’s presidential election scheduled for 2027, as the government struggles to pass its fiscal plans in a divided parliament.
Le Pen’s proposals and economic pressures
Le Pen’s political platform includes cutting value-added tax and reducing government spending, as well as lowering France’s contributions to the European Union budget and adopting tougher immigration policies.
France is facing mounting pressure as it prepares the 2027 budget, amid weaker growth expectations and higher borrowing costs and energy prices.
