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France Confirms €64 Billion Military Budget Hike; Unveils €43.8 Billion Austerity Plan

France’s government will shield defense spending from the €43.8 billion cuts introduced to curb record-high public debt.

France's President Emmanuel Macron delivers a speech to army leaders, on the eve of the annual Bastille Day Parade in the French capital, at l'Hotel de Brienne in Paris, France July 13, 2025. LUDOVIC MARIN/Pool via REUTERS
French Prime Minister Francois Bayrou reacts during a news conference to present a major public finance recovery plan, outlining his first budgetary orientations for 2026, in Paris, France, July 15, 2025. The slogan reads "The moment of truth". REUTERS/Abdul Saboor TPX IMAGES OF THE DAY
A horse of the French Republican Guard falls during the annual Bastille Day military ceremony on the Champs-Elysees avenue in Paris, France, July 14, 2025. REUTERS/Gonzalo Fuentes TPX IMAGES OF THE DAY
El gobierno francés propuso una nueva medida para costear las deudas.

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  • Opposition parties led by Marine Le Pen have threatened censure if key austerity measures are not withdrawn and a decision on voluntary military service is set for autumn.