Sébastien Lecornu faces difficult 2027 budget preparations

French Prime Minister Sébastien Lecornu faces a difficult legislative period as his government prepares the 2027 budget. The task is complicated by a fragmented National Assembly containing eleven political groups and an upcoming presidential campaign that is expected to intensify debates within the chamber.

Preliminary outlines for the 2027 finance bill suggest significant spending constraints. Most ministries may see expenditure increases limited to 0.4%, which is significantly below expected inflation. Exceptions include the Ministry of the Armed Forces, which is slated for a 6.4 billion euro increase, and the Ecology mission, which could see a 1.5 billion euro rise.

Financial pressures are mounting due to a projected 12.3 billion euro increase in debt servicing costs and a 17 billion euro rise in Social Security spending. To manage these costs, experts have suggested the possibility of an ‘année blanche’ (white year), which would involve freezing social benefits and pensions in 2027. Additionally, the government faces economic challenges regarding rising unemployment, which reached 8.1% in January 2026.