France government targets €6 bn of cuts in 2026 to bring deficit down to 5% of GDP

The French government has announced a fiscal plan to reduce the public deficit to 5 % of GDP by 2026. To meet this target, it will implement €6 bn of immediate savings in 2026, part of a broader €12 bn austerity effort that will extend into 2027. The cuts will affect multiple ministries and focus on sectors such as housing, ecology and local authorities, including reductions to the MaPrimeRénov’ renovation aid and adjustments in health insurance reimbursements.

Local and regional governments are also required to contribute, with the 2026 finance law imposing a €5 bn savings demand on collectivités. Officials are urged to trim payroll costs, reduce contract renewals and reorganise services, using tools such as predictive staffing management (GPEEC) and “inverse seniority‑driven workforce” adjustments. The combined measures aim to curb spending growth while preserving core public services amid rising defense costs and EU fiscal rules.