Overview
- The government presented its 2027 budget package on October 1, 2026, saying it must find €43 billion, including €18 billion in new levies, to hold the public deficit near 5% of GDP.
- Many family and housing allowances, the prime d’activité and most pensions above €1,260 will be frozen, a move the government describes as a broad year of frozen indexation while minima sociaux like RSA and minimum vieillesse are spared.
- Retirees are being asked to contribute about €5.5 billion through partial de‑indexation of pensions over €1,260 and a cut to the 10% abatement cap, and public‑sector pay will see a fourth consecutive freeze with more than 1,000 state jobs cut.
- Health‑sector savings in the package include reduced reimbursements for some services, price cuts on medicines and devices, a €500 million shift of some hospital reimbursements to complementary insurers, and a target of €1 billion in sick‑leave savings.
- Student protests forced a same‑day government reversal of proposed fees for non‑bursary BTS and classes préparatoires, unions and parties have denounced the plan, and the bill now faces heated debate and possible renegotiation in parliament.