Overview

• The French government has announced €40 billion in spending cuts for 2026, aiming to reduce the public deficit from 5.4% of GDP in 2025 to 4.6% in 2026.
• An additional €3 billion is allocated for defense spending, prioritizing national security and European strategic autonomy.
• Prime Minister François Bayrou ruled out tax increases, labeling them 'untenable,' and called for structural reforms to address weak production and low employment rates.
• Opposition parties, including the left and Rassemblement National, have threatened censure, criticizing the austerity measures as unfairly targeting citizens and public services.
• Key budgetary decisions and orientations for 2026 are set to be presented before July 14, as the government accelerates its timeline for consultations and planning.