Overview
- The government has begun drafting the final pre‑election 2027 finance bill with a focus on deficit reduction and spending restraint and is courting Socialist lawmakers to secure passage.
- Finance officials told every ministry except defense to cut operating costs and hold staffing levels to match the stated budget path.
- France covered a large 2025 rise in public spending by raising about €23 billion in taxes, which helps satisfy the EU rule that limits how fast spending may grow even as many doubt a sub‑3% deficit by 2029.
- The growth outlook was nudged down to 0.9% for this year, and officials warn that higher oil prices or sustained borrowing costs would further squeeze room to fix the public accounts.
- Alongside the domestic budget push, Paris is testing options for new EU‑level revenues as member states open negotiations on the 2028–2034 European budget with an uncertain deal later this year.