Gabon and France confront deep fiscal cuts amid tightening budget reforms

Gabon’s 2026 Finance Law (LFR) slashes public investment by 45% to 1.17 trillion CFA francs, with sectoral cuts of 68% in agriculture, 80% in housing, and 86% in industry and mining. Meanwhile, operating and prestige expenditures rise, including a 35% jump in goods and services spending and a 116% increase in funds for national ceremonies. To offset shrinking revenues, the government proposes a 3% payroll tax on the wage base.

In France, the International Monetary Fund warns that the country’s deficit must fall below 3% of GDP by 2029, calling for an unprecedented fiscal consolidation of about 0.8 percentage points of GDP annually from 2027 to 2029. With public debt at €3.536 trillion and projected interest costs exceeding €74 billion by 2027, the IMF urges reductions in public spending, especially in social benefits, unemployment insurance, and pension schemes, while noting France already has a high tax burden of roughly 46% of GDP.