The French government will announce plans to drastically reduce the budget deficit. The resulting political struggle may jeopardize the position of prime minister and increase investors' concerns about France's debt. In the final fiscal plan before next year's general election, French government ministers will announce the details of a 54 billion euro fiscal “effort” on Thursday to curb uncontrolled spending and reduce the fiscal deficit as a share of GDP from 5.4% this year to 5% in 2027. Prime Minister Sébastien Le Corney has indicated that he will seek savings from sensitive expenditure items such as pensions, public sector wages, and sick leave benefits covered by the government. He also said that despite opposition from business groups, the one-time tax levied on large enterprises starting in 2025 will be extended at least in part.

The French government will announce plans to drastically reduce the budget deficit. The resulting political struggle may jeopardize the position of prime minister and increase investors' concerns about France's debt. In the final fiscal plan before next year's general election, French government ministers will announce the details of a 54 billion euro fiscal “effort” on Thursday to curb uncontrolled spending and reduce the fiscal deficit as a share of GDP from 5.4% this year to 5% in 2027. Prime Minister Sébastien Le Corney has indicated that he will seek savings from sensitive expenditure items such as pensions, public sector wages, and sick leave benefits covered by the government. He also said that despite opposition from business groups, the one-time tax levied on large enterprises starting in 2025 will be extended at least in part.