On Tuesday 15 July, the French government unveiled the broad outlines of the draft national budget for 2026, which aims to make substantial savings of €43.8 billion.
The government has set as its first rule not to spend any more in 2026 than it did in 2025 (€7 billion in savings hoped for with this ‘blank year’), with the exception of the increase in defence spending (+€3.5 billion) and the cost of public debt (€65 billion in 2025).
Other areas where savings will be made include local authority spending (€5.3 billion), healthcare (€5 billion), the non-replacement of one in three retiring civil servants and the abolition of two public holidays. On the revenue side, a tax on small parcels will be introduced, a ‘solidarity contribution’ for the wealthiest French citizens will be introduced and the fight against fraud will be stepped up.
Thanks to these savings, the French authorities hope to reduce the public deficit to 5.4% of national GDP in 2025 and 4.6% in 2026. They target the following reduction trajectory: 4.1% of GDP in 2027, 3.4% in 2028 and 2.8% in 2029.
The risk is political for the ‘Bayrou’ government, which does not have a political majority in the French National Assembly to pass the budget. Already, the far-right party (RN) and the radical left (LFI) have voiced their opposition to the guidelines presented on Tuesday. (Original version in French by Mathieu Bion)