France presents 2027 budget plan with €54 billion in savings

France’s government presented the outline of its 2027 budget on October 1, proposing about €54 billion in savings as it seeks to lower the deficit amid record public debt and rising borrowing costs. Prime Minister Sébastien Lecornu’s government is targeting a deficit of 5% of gross domestic product in 2027, but the proposed measures still face parliamentary scrutiny and a difficult passage in a National Assembly where the government has no clear majority. The government’s plan includes a freeze on public-sector salaries and measures to curb pension costs, including limits affecting pension increases. Other proposals concern state-funded sick leave and tax relief available to retirees. The package remains subject to change: the government was due to submit its Finance Bill to the National Assembly by October 6, and lawmakers have yet to debate or vote on the proposals. Lecornu has said that without savings, the deficit could approach 6.5% of GDP in 2027. The government’s target is to bring it to 5%. The deficit is projected at 5.4% of GDP in 2026, according to figures cited in the reports. These are government estimates and targets, rather than settled outcomes.