Contribution on high incomes, reduction in the number of civil servants, tax on sweet products... The government unveils its draft budget for 2027
Sébastien Lecornu and his ministers unveil a “recovery budget” for France, with 54 billion euros in savings to be found for 2027, including 43 billion in 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. The government intends to reduce the deficit to 5% of GDP in 2027, in particular thanks to "the implementation of 43 billion euros of recovery measures", it announces in its finance bill. To these 43 billion euros is added “the increase in recovery measures taken in 2026” and “previously”, which brings “total efforts” in 2027 to “54 billion euros”, writes the government. Among the measures announced: a tax on sweet products, the end of "rents" to support renewable energies, an extension of the differential contribution on high incomes, a reduction in the number of civil servants, a tax on kerosene suppliers... Follow our live stream.
A tax on sweet products on the table. The Minister of Commerce, Serge Papin, announced Wednesday that a new tax on sweet products was "one of the things that are on the table" of the government in the 2027 budget.
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.
Sébastien Lecornu is sounding the alarm. “Reality is catching up with us,” the Prime Minister warned on Tuesday about X, citing the rise in the cost of France’s 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.
#BUDGET The number of state civil servants will drop by a total of 1,076 in 2027, according to the draft budget.
#BUDGET The government plans to increase 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.
#BUDGET The government also 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", according to the 2027 draft budget. It intends to "make the financing of renewable energies more efficient by putting an end in particular to the excessive remuneration of the support schemes and the potential annuities inherited from historical schemes", according to the text.
#BUDGET "In 2027, we are returning to the path of budgetary consolidation. We are proposing a very significant effort: 43 billion new measures, for a total effort to recover the accounts of 54 billion euros. Public spending will fall to 56.9% of GDP, below its 2017 level", we can read in the government's draft budget. Sébastien Lecornu announced this goal of 54 billion in an interview with Le Figaro.
#BUDGET The government is proposing an effort of 43 billion euros in new measures, according to the 2027 draft budget.
It's 9 a.m., here's a new update on the news:
• #BUDGET The government presents this morning its draft budget for the year 2027, which includes 54 billion euros in savings to reduce the deficit. Several measures, including the partial freezing of the increase in pensions, promise lively debates.
• #HIGH SCHOOLS The movement of high school students continues in France, where several establishments are blocked all over France. According to a count sent by the Student Union, ten faculties are also blocked. The government deplored yesterday a "rise in violence".
• #WEATHER The red “rain-flood” vigilance was lifted yesterday evening in Hérault and Gard. Schools, closed yesterday in Gard and partially closed in Hérault, are reopening today and public transport will also operate.
#BUDGET The draft budget for 2027 is presented to the Council of Ministers on Thursday before beginning its long examination in Parliament thirteen days later. Still without an absolute majority in the Assembly, the Prime Minister will have to take into account an additional parameter this year: the presidential election.
“Last year, the presidential election was too far away. Everyone could do anything. The candidates were not caught up with reality,” judges a source within the executive. Like Marine Le Pen, those who believe in their chances of accessing the Elysée will not censor, at least before having secured the budget, so as not to find themselves with a special law in their hands next May, we bet in the corridors of power.
But, in the ranks of supporters of the government, we are a little less optimistic. “The examination of the budget must be shorter than last year because it will be a platform for the presidential election,” sighs a Renaissance deputy. Except that this is not Sébastien Lecornu's intention. The Prime Minister, who announced that he wanted to make 54 billion euros in savings in order to achieve a 5% deficit, intends to complete the budgetary review, like last year.
In the absence of a majority, a fair vote on the budget is impossible. “We want to give the parliamentary discussion a chance. Afterwards, all options remain open, including the route of ordinances,” summarizes a source in the executive.
#BUDGET Hello everyone, I hope you are in good shape because today is the presentation of the budget to the Council of Ministers. Concretely, the government will examine two texts: the finance bill (PLF) and the Social Security financing bill (PLFSS). The National Assembly will begin the budgetary marathon with the first part of the PLF from October 13.
#BUDGET No absolute majority, a presidential election looming and a PS not very excited by the first announcements on the budget. The adoption of budgetary texts promises to be complicated for Sébastien Lecornu, who promised that there would be neither 49.3 nor ordinances.
#BUDGET Before arriving at the National Assembly in October, the 2027 budget is presented today to the Council of Ministers. The government will detail its budget copy for the year 2027, the broad outlines of which we know. Fifty-four billion savings are hoped for, with a deficit target of 5%. Several measures, including the partial freezing of the increase in pensions, promise lively debates. The government will also present the Social Security budget (PLFSS).
