France Plans €54 Billion 2027 Cuts as Debt Climbs to 121.7% of GDP

3 articles · Updated · Euronews · Sep 21

€54 billion in spending cuts is at the center of France’s 2027 budget, as the government tries to contain a deficit that it still sees at 5% of GDP next year.
Debt is projected to hit 119.3% of GDP in 2026 and 121.7% in 2027—the highest since 1978—after last year’s deficit reached 5.1% and this year’s is forecast at 5.4%.
Prime Minister Sebastian Lecornu left politically sensitive steps, including trimming pensioner tax breaks, for parliament, where critics say broad cuts would fall hardest on poorer households.
The draft has been sent to the High Council of Public Finances for review, while its chief said France can still avoid a crisis if it moves quickly and responsibly.
France has been under EU special monitoring for two years and is trying to reassure markets after pledging a 2027 budget path that fits EU spending guidelines.