France’s 2027 budget aims to bring its deficit down to 5% of GDP

France has presented a 2027 budget meant to reduce the annual gap between public spending and revenue to 5% of GDP, from an expected 5.4% this year. It relies on €43 billion in new measures, including tighter spending, frozen public-sector pay and most pensions, and tax changes; counting earlier policies still taking effect, the government puts the overall effort at €54 billion. The large package produces only a modest headline improvement because France’s interest bill is rising quickly. The independent fiscal watchdog said the government’s forecast of 1% economic growth next year is optimistic and called the deficit target a minimum, underscoring how little room the plan leaves if the economy disappoints.