The Government’s draft budget proposes to reduce the public deficit to 4.7% in 2026, compared to 5.4% this year, announced Sébastien Lecornu, Prime Minister, during his general policy speech, this Tuesday, October 14. He added that this was a smaller effort than the project presented by François Bayrou (4.6% of GDP), which provided for the elimination of two holidays, a measure abandoned.
The latter believes that it is not “a policy of austerity.” “We have asked large companies to make additional efforts in the interests of social justice,” added Sébastien Lecornu, while the “exceptional” contribution to large companies adopted last year will be extended until 2026.
This draft state budget, which should be largely modified by Parliament, proposes an effort of 30 billion euros and is based on “optimistic” growth hypotheses in 2026, according to the Higher Council of Public Finances.
Conference of social partners
The prime minister announced an emblematic measure: the suspension of the pension reform “until the presidential elections” in 2027. He thus responded to the demands of the Socialist Party (PS), which threatened the Government with presenting its own motion of censure.
“No age increase will occur from now until January 2028, as specifically requested by the CFDT. In addition, the insurance period will also be suspended and will remain at 170 quarters until January 2028.” Sébastien Lecornu intends to entrust the matter to the social partners.
A conference on pensions and work should be organized in the autumn to discuss “the entire management of the pension system”, “improving women’s pensions” and combating hard work.
“This conference will have time to decide before the presidential elections” in 2027, he stated in his general policy statement to the Assembly. “If the Conference concludes, the Government will transform the agreement into law and Parliament will decide,” he promised.
At the same time, the budget project presented by the government takes up the idea of a blank year, proposed by François Bayrou, and the elimination of 3,000 civil servant positions. Exceptional contributions to large companies and the highest incomes will be maintained, while a new tax could be established on family holding companies.
“We will ask to create an exceptional contribution from the great fortunes that we propose to allocate to finance future investments that affect our sovereignty, for infrastructure, ecological transition or defense,” said the President of the Government.
Source: BFM TV
