France is planning massive savings to consolidate its budget

The French government wants to reduce the high budget deficit through austerity measures. 43 billion euros are to be saved in 2027, according to the draft budget that was presented to the cabinet. "This budget enables us to get back on track for consolidation through a significant effort," said Finance Minister Roland Lescure.

The savings therefore amount to a total of 54 billion euros. Some of these have already been initiated. 43 billion euros are new for 2027.

Specifically, it is proposed to freeze public sector salaries and most pensions. In addition, municipal budgets and health care costs are to be cut and tax breaks for companies are to be reduced. However, a broad-based tax increase for households and companies is not planned.

France is currently in worse financial shape than it has been for a long time. The government expects total debt to amount to 121.7 percent of gross domestic product next year. France is currently more indebted than any other EU country. The interest burden this year amounts to almost 80 billion euros, significantly more than the budget of the Ministry of Education. Interest rates on 10-year government bonds rose to 4.9 percent on Thursday - a high since 2002.