Overview
- The National Assembly began formal debates on the 2027 budget on Tuesday, Oct. 13, 2026, after Finance Minister Roland Lescure presented a draft that aims to cut the deficit from 5.4% to 5.0% of GDP.
- The government proposes about €40–45 billion in savings focused on reductions to development aid and employment programs while increasing defence spending.
- The cabinet lacks a clear parliamentary majority and faces an early rejection motion from the Socialists backed by LFI and Communist deputies with the Greens still deciding their stance.
- The High Council of Public Finances warned the budget rests on optimistic assumptions such as 1% growth and falling long-term yields, raising doubts about whether the deficit targets are realistic.
- Comparable pressure in Germany’s draft 2027 budget, which totals about €555.4 billion and also leans on borrowing and higher defence and interest costs, shows this is a broader European fiscal squeeze that could mean more cuts to public services and renewed social unrest.