France seeks €126 billion fiscal effort to avert debt crisis

France must mobilise about €126 billion of fiscal adjustments by 2032 to stabilise public debt, according to a report commissioned by the Ministry of the Economy and prepared by four expert economists. The analysis warns that, without new measures, the budget deficit could rise to 5.9 % of GDP in 2027 and approach 7 % by 2030, pushing debt levels toward 130 % of GDP.

One of the options discussed is a so‑called “année blanche” for 2027, a temporary suspension of automatic inflation‑indexing for many public expenditures, while key social minima such as the RSA and minimum old‑age pension would be excluded. The report notes the urgency of the situation, quoting OFCE president Xavier Ragot: “In a context of rising interest rates, the state of our public finances is no longer sustainable.” The plan comes amid growing political pressure ahead of the 2027 presidential election.

The proposed fiscal effort would aim to bring the deficit below the EU‑mandated 3 % of GDP threshold and reduce the burden of debt‑service interest payments, using a mix of spending cuts, tax adjustments and growth‑supporting measures.