France announces €54 billion savings plan to cut deficit

French Prime Minister Sébastien Lecornu has announced a €54 billion savings drive for the 2027 national budget, aiming to reduce the public deficit to 5% of GDP. The plan, presented as an "assertive stance" on cutting spending, comes as France faces rising borrowing costs, economic stagnation, and growing social unrest over high fuel prices. Lecornu, in an interview with Le Figaro, insisted the measures do not constitute austerity. "It is a political risk, I am not unaware of that. But we are a long way from austerity," he said. The government acknowledged that the 2026 deficit will likely rise to 5.4% of GDP, missing its initial target, which underscores the urgency of the fiscal consolidation effort. The budget proposal includes €6 billion in savings from the pension system, a move that has drawn sharp criticism from opposition parties. Lecornu stated that no pension would be reduced, but the debate over the pace of future increases would be settled in parliament. Far-right leader Marine Le Pen has called the pension measures unacceptable, raising the risk of a no-confidence vote that could topple the government.