France has set out a 2027 budget plan aimed at restoring control over public finances as debt is projected to reach 121.7% of gross domestic product that year, the highest ratio recorded in the country since 1995.
Prime Minister Sébastien Lecornu presented the initial outline on 17 September 2026. The draft state budget and social security bills are due to go to the Council of Ministers on 1 October 2026, before a parliamentary process whose outcome remains uncertain.
The government is targeting 54 billion euros in savings. It has described a 30 billion euro squeeze that is expected to be split between 17 billion euros in spending cuts and 14 billion euros in new taxes. The figures point to a budget built around restraint in public spending, alongside a larger tax take from households and companies.
Public debt stood at 115.7% of GDP in 2025 and is projected to rise further by 2027. The government plans to reduce the deficit to 5.0% in 2027 and maintains a target of 3.0% by 2029.
The targets form part of France's effort to meet European Union fiscal requirements. In January 2025, the Council of the EU recommended that France end its excessive-deficit situation by 2029.
The measures outlined by the government include freezing social benefits and pensions at 2025 levels, while also slowing pension growth until 2030. It also plans to leave income tax brackets unadjusted for inflation, cut 23 tax exemptions and raise health insurance deductibles.
Temporary taxes on top earners and large firms would be extended. These measures would spread the fiscal adjustment across welfare payments, household taxation, health costs and corporate and high-income levies.
Pressure on the plan is also visible in financial markets. The premium France pays to borrow relative to Germany exceeded 100 basis points this week, reaching levels last seen during the eurozone debt crisis. That premium reflects the extra return investors require to lend to France rather than Germany.
The budget will face a divided parliament, where the bill is likely to be amended. It remains unknown whether lawmakers will pass the package in its proposed form or which changes will prevail.
Labour opposition is building before the bills reach ministers. The CGT union confederation has called for a nationwide strike across the public sector on 29 September 2026, focused on the planned spending cuts and tax increases.
France's fiscal problem is driven by high structural deficits and weak growth. The government’s task is therefore twofold: deliver a deficit path acceptable under EU rules while winning sufficient support for policies that impose visible costs on pensioners, benefit recipients, taxpayers and businesses. Whether the measures stabilise debt beyond 2027, whether borrowing premiums remain elevated and whether labour action affects parliamentary votes are all unresolved.
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