5 days ago
France Plans €54 Billion Savings Drive Amid Growing Protests
France is trying to save €54 billion in its 2027 budget.
The government says this is needed to prevent its deficit from becoming too large.
Without savings, the deficit could rise above 6.5% of the country’s economy.
France is also paying more to borrow money.
At the same time, fuel prices are hurting fishermen, farmers and other workers.
Fishermen blocked ports in southern France to protest fuel costs.
The government extended emergency fuel help for some industries until the end of the year.
Political parties are arguing over the budget, and it may be difficult to pass in parliament.
The National Rally says it may vote against the plan, especially if pensions are not increased with inflation.
Prime Minister Sebastien Lecornu said France will include €54 billion in savings in its 2027 budget.
Without cost-cutting measures, the 2027 deficit would exceed 6.5% of GDP, Lecornu said.
The government is under pressure from rising borrowing costs, high fuel prices and public protests.
Fishermen blocked several southern French ports before agreeing to lift the blockades after talks.
The budget faces uncertain parliamentary support, with the National Rally opposing pension changes linked to inflation.
- Who
- Prime Minister Sebastien Lecornu’s government, opposition parties, fishermen and other affected workers.
- What
- France plans €54 billion in savings in its 2027 budget to control the deficit.
- Where
- France, including ports in the south and Mediterranean region.
- When
- The announcement was made on Thursday, September 17; the budget is due to be presented at the end of the month, ahead of the presidential election next April-May.
- Why
- The government says savings are needed because of rising public spending, borrowing costs, fuel prices and pressure on the fiscal deficit.
Government and fiscal reform supporters
Opposition parties and protesting workers
Need for spending cuts
Government and fiscal reform supporters
The government says €54 billion in savings are necessary to rein in spending, borrowing costs and the deficit.
Opposition parties and protesting workers
Opposition parties are resisting spending cuts they consider unacceptable, while workers and fishermen are protesting the impact of high costs.
Pension policy
Government and fiscal reform supporters
The government is considering not raising pensions in line with inflation as a way to save money.
Opposition parties and protesting workers
Marine Le Pen and the National Rally say they would oppose a budget containing that measure.
Budget approval
Government and fiscal reform supporters
Lecornu’s government is consulting political parties to produce a bill that can pass France’s divided parliament.
Opposition parties and protesting workers
Socialist lawmakers have ruled out supporting the bill, while the National Rally has signaled opposition but has not ruled out abstaining.
Key facts
- Planned savings
- €54 billion in the 2027 budget
- Projected deficit without savings
- More than 6.5% of GDP
- Budget presentation
- Due at the end of September
- Borrowing costs
- French borrowing rates reached their highest level since 2008
- Fishermen’s protest
- Blockades at several southern Mediterranean ports over fuel costs
- Fuel support
- Emergency subsidies for agriculture, fishing and construction extended until the end of the year
- Presidential election
- Scheduled for next April-May
Quotes
Sebastien Lecornu
France’s prime minister
“This is a major turnaround; these savings will significantly rein in the spending machine, whose costs continue to rise relentlessly every year”
theprint.in
“All in all, if this budget did not include any cost-saving measures, the 2027 deficit would exceed 6.5% of GDP”
theprint.in
Sources
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