Overview

• Macron’s government has officially advanced its target to reach a €64 billion military budget by 2027 with extra allocations of €3.5 billion in 2026 and €3 billion in 2027.
• Prime Minister François Bayrou’s 2026 austerity package freezes pensions and public-sector wages, cuts social benefits, imposes a new solidarity tax on the wealthy and eliminates two public holidays.
• All ministries except defense will face cuts under the €43.8 billion plan designed to reduce the deficit from 5.8 percent of GDP in 2024 to 4.6 percent in 2026.
• With public debt at €3.3458 trillion—114 percent of GDP and rising by €5 000 per second—the government warns failure to act could lead to a Greek-style crisis.
• Opposition parties led by Marine Le Pen have threatened censure if key austerity measures are not withdrawn and a decision on voluntary military service is set for autumn.