Paris, Oct 1 (EFE).- The French government on Thursday presented its first draft budget for 2027, proposing €43 billion in spending cuts and other measures to reduce the deficit, sparking resistance from opposition parties in a parliament where Prime Minister Sébastien Lecornu’s government lacks a majority.
Economy Minister Roland Lescure described the budget as “urgent,” citing the difficult international environment and what he called the loss of confidence in the French economy.
France is currently paying its highest interest rates on public debt in 24 years.
The draft, approved by the Council of Ministers, immediately drew criticism from opposition parties, creating a fresh challenge for Lecornu’s government after the difficulties it faced in passing the 2026 budget.
At that time, the Socialist Party, which has 60 lawmakers, helped the prime minister secure approval after breaking with the broader left-wing alliance with which it had contested the election.
In return, the Socialists demanded changes to the pension reform that President Emmanuel Macron had pushed through in 2023 at significant political cost.
The 2027 budget is due to reach the National Assembly from Oct. 13, where the government faces an uncertain path to approval and a politically charged period ahead of the next legislative and presidential elections.
The government moved quickly to defend the proposal, which includes €43 billion in spending cuts, reductions in some tax breaks, a freeze on salaries for civil servants and some pensioners, and tax increases for other groups.
The Socialist Party called the plan “a provocation” and presented its own alternative budget.
Its proposals include raising the minimum wage to €1,700 and introducing new taxes on large fortunes, including the so-called “Zucman tax,” which the party also sought to introduce in 2026.
The Communist Party and the Greens have also withheld their support and threatened to back a no-confidence motion if the bill is not substantially amended.
Jean-Luc Mélenchon’s La France Insoumise (LFI) has likewise opposed the proposal.
Possible support from Le Pen
Marine Le Pen’s National Rally, which has been leading in opinion polls ahead of the next presidential election, adopted a less confrontational tone, welcoming the government’s statement that the budget could be reversed if political circumstances change.
That position could leave open the possibility of National Rally support for the budget.
However, party representatives also sharply criticized the proposal, saying it imposes cuts on the French population without sufficiently reducing the cost of government.
The traditional right has voiced similar criticisms, although it appears more inclined to support the proposal in the name of political and fiscal stability and to prevent further increases in the cost of servicing France’s public debt.
The budget also failed to win the endorsement of the High Council of Public Finance, an independent advisory body.
The council said the government’s projections depend on an optimistic economic scenario that could be undermined by a highly unstable international environment.
The government is forecasting 1 percent GDP growth in 2027 and expects the proposed spending cuts, which affect all areas except defense, the interior, justice and education, to reduce the budget deficit to 5 percent of GDP, from a projected 5.4 percent in 2026.
Paris aims to bring the deficit below 3 percent of GDP by 2029, in line with its commitments to the European Union.
The draft budget must now go through the parliamentary process, where its prospects for approval remain uncertain and where the impact of the proposed cuts is likely to become a major political issue. EFE
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