Government's 2027 budget places heavy burden on French businesses

In a recent budget presentation, Prime Minister Sébastien Lecornu described the 2027 plan as the most rigorous in a long time, aiming for a public-deficit level of 5% of GDP. He emphasized that the state will not undermine the mechanisms that enable companies to invest, produce and grow. Nonetheless, the government signaled that businesses will be asked to shoulder a substantial part of the fiscal adjustment. The message comes after a September letter to entrepreneurs in which the administration reassured them that core investment incentives would remain intact, even as economic growth remains weak according to Insee data.