French PM announces public deficit target around 4.7 pct of GDP for 2026

27/9/2025 6:53

French Prime Minister Sebastien Lecornu has said that the government is aiming for a public deficit of about 4.7 percent of gross domestic product (GDP) in 2026, while maintaining the objective of bringing the shortfall to 3 percent by 2029.



Lecornu said in an interview with Le Parisien published Friday that the 2026 budget would reflect consultations with trade unions, employers' groups and public institutions, stressing that it would not be "a budget of austerity and social regression."



He said the government would cut 6 billion euros in state spending and operating costs, as part of a long-term reform of public administration and territorial organization through decentralization.



At the same time, he noted that allocations for pensions would rise by 6 billion euros (7 billion U.S. dollars) and for health care by 5 billion euros next year.



Asked about the possible introduction of a wealth tax, known as the "Zucman Tax," Lecornu said the government had no intention of adopting such a measure, arguing that it could harm employment, investment and competitiveness.