SĂ©bastien Lecornu and his ministers unveil a ârecovery budgetâ for France, with 54 billion euros in savings to be found for 2027, including 43 billion via new measures.
What you need to know
What budget for France in 2027? On Thursday, October 1, the government presents its finance bill (PLF) and that of Social Security (PLFSS). The texts will then be examined by Parliament this fall. Among the measures announced: the freezing of family allowances, a tax on sweet products, the end of "rents" to support renewable energies, the extension of the differential contribution on high incomes, a reduction in the number of civil servants, a tax on kerosene suppliers or even the fact of making registration in BTS and prep classes payable for non-grant students... Follow our live stream.
Objective: 54 billion savings. The government intends to reduce the deficit to 5% of GDP in 2027, in particular thanks to âthe implementation of 43 billion eurosâ of new ârecovery measuresâ. Added to this are "the ramp-up" of previous decisions aimed at bringing "all efforts" in 2027 to "54 billion euros", writes the government.
De-indexing or under-indexing of pensions? The government wants to "almost halve" the Social Security deficit, according to the Minister of Labor, Jean-Pierre Farandou. The executive intends in particular to save 5.5 billion euros by slowing down the "mechanical progression" of retirement spending, including 4.1 billion via de-indexing or under-indexing of pensions above 1,260 euros.
SĂ©bastien Lecornu is sounding the alarm. âReality is catching up with us,â the Prime Minister warned on Tuesday about X, citing the rise in the cost of Franceâs debt. The country currently borrows with a 10-year maturity at 4.77%, just a few points from its record of 2008, at the height of the global financial crisis.
The current "free" nature of these training courses "constitutes a singularity within higher education", justifies the government for introducing these sums which it describes as "modest".
The government plans, for non-scholarship students, to charge 178 euros for registration in BTS and 270 euros for preparatory classes for the grandes Ă©coles, according to the finance bill (PLF).
Concretely, this is "an extension to ultra-processed solid products contributing the most to overconsumption of sugar from the tax on sugary drinks", we can read in the government document. The measure was mentioned by the Minister of Commerce, Serge Papin, yesterday.
In a press release published Monday, Ania (National Association of Food Industries) already denounced the project of this tax. Ania vigorously protests against this tax, which "will inevitably end up on the shelves and will hit hard the purchasing power of the French, at the very moment when everything suggests a significant return of inflation. This tax will finally trigger a chain reaction from which no one will escape unscathed."
The government confirms the introduction of a tax on sweet products in its draft Social Security budget.
This "contribution", which would concern fuel suppliers in "the metropolitan territory", would be calculated "in proportion to the volumes of fossil kerosene released for consumption", specifies the government.
A tax on kerosene suppliers is planned by the government, in order to finance the development of projects in sustainable (non-fossil) fuels for aviation.
âThe back-to-school allowance will thus be reformed, while the amount of family benefits will be maintained in 2027 at its current level,â we can read in the government document, consulted by franceinfo.
The government is proposing a freeze on family allowances, according to the Social Security financing bill.
In its draft budget, the government wants to make the financing of renewable energies "more efficient" by putting an end to the "excessive remuneration" of the oldest support schemes, described as "rents". It intends to âmake the financing of renewable energies more efficient by notably putting an end to excessive remuneration for support schemes and potential rents inherited from historical schemesâ, according to the text.
The government expects increased tax revenues from VAT and income tax in 2027, according to the draft finance law, unlike corporate tax, whose revenues would decrease compared to 2026. Revenues linked to VAT would increase by more than 7 billion euros compared to 2026, those from income tax would increase by 5.7 billion euros, while corporate tax would see its revenues decrease by 1.8 billion euros.
