Paris: Faced with an unprecedented budget crisis, French Prime Minister S©bastien Lecornu has called upon the French public to contribute to a pound 54 billion "effort" by 2027. This comes in response to the country's high public deficit and escalating debt issues, as discussed during a recent government seminar.

According to Burkina Information Agency, French public debt reached pound 3,536.1 billion at the end of the first quarter of 2026, accounting for 117.5% of the nation's GDP. This figure marks an increase of pound 75.6 billion over the previous quarter. Prime Minister Lecornu's proposed draft budget includes a budgetary effort aimed at maintaining fiscal stability without resorting to what he termed an "austerity budget."

The proposed effort, which is approximately 1.8% of GDP, is intended to curb public spending. Without these measures, the deficit could climb to 6.5% of GDP by 2027, warns the Prime Minister. The financial pressure is further exacerbated by the rising cost of debt, with interest payments projected to necessitate an additional pound 10 billion in 2027. Additionally, spending by local governments could increase by pound 7 billion, and social security spending might rise by pound 22 billion.

To manage this financial challenge, the government plans to freeze funding for most ministries, except for those related to the Armed Forces, Justice, the Interior, Research, and Ecology. Notably, the Armed Forces budget is set to increase by pound 6.4 billion in 2027. Savings will be sought in other areas, with the Ministry of Labor expected to make pound 2.5 billion in cuts, and efforts to save pound 2 billion on sick leave are also being considered. Moreover, reforms in negotiated terminations are to continue.

Retirees are not exempt from the financial measures, although Prime Minister Lecornu has assured that pensions will not decrease. However, the decision on the pace of pension increases will be left to Parliament. While no general tax increase has been announced, the government's financial flexibility is limited by the need to fund spending and manage the rising cost of debt.

In June 2026, projections from the Bank of France indicated that the public debt ratio could reach 122% of GDP by 2028, compared to 90% for the eurozone. Without additional savings, the public deficit was projected at 5.2% of GDP in 2026. As the 2027 presidential elections loom, France remains in a budget impasse, grappling with increasing debt, a persistent deficit, and austerity measures affecting households. Despite assurances of recovery, public finances continue to face severe strain.