Overview

• The framework targets €43.8 billion in savings to reduce the budget deficit from 5.8 % of GDP in 2024 to 4.6 % in 2026 and to 2.8 % by 2029.
• All state expenditures will be frozen at 2025 levels for 2026, with the sole exceptions of debt servicing and planned increases in defense funding.
• An “année blanche” will suspend increases in social benefits, pensions and income tax brackets for 2026, delivering about €7.1 billion in cuts.
• The government plans to eliminate 3 000 civil-service posts by not replacing one in three retirees and to remove two public holidays to further curb spending.
• New revenue measures include a solidarity contribution on the wealthiest, a tax on small imported parcels and an autumn bill to strengthen social and tax fraud enforcement.