France plans 2027 fiscal “white year” to freeze pensions, benefits and tax brackets

The French government is weighing a “fiscal white year” for 2027 that would keep public spending at the same nominal level as the previous year. By suspending the automatic indexation of pensions, social benefits and the income‑tax brackets, the plan aims to generate about €35 billion in savings.

Minister of Public Accounts David Amiel and Finance Minister Roland Lescure said the measure would help reduce the public deficit, which could otherwise reach 5 % of GDP and push national debt toward 130 % of GDP by 2030. Critics warn that freezing nominal payments while prices rise will erode the purchasing power of retirees and low‑income households, potentially pushing an additional 200 000 families into higher tax brackets.

The proposal will be debated in the autumn budget bill ahead of the 2027 presidential election, with officials stressing that the discussion on indexation to inflation is “vital” for France’s fiscal stability.