Macron-era budget plan leans on tax hikes as deficit stays above EU limit
The 2027 budget proposal unveiled on October 1 calls for higher taxes while France’s deficit remains near 5% of GDP, far above the EU 3% ceiling.
On October 1, the French government revealed its 2027 budget draft, a stark departure from the optimistic outlook of 2017 when Bruno Le Maire and Gérald Darmanin celebrated the first Macron budget. The new plan hinges on tax increases to try to rein in public finances, yet the deficit is expected to linger at roughly 5% of GDP for the fifth year running, well above the 3% limit set by EU rules. Public debt is projected to climb to its highest level since the post-war period.
The proposal signals that France is unlikely to exit the EU’s excessive-deficit procedure launched in 2024. Overall, the budget reflects a move away from earlier promises of tax relief and stronger purchasing power.
Why it matters
France’s fiscal trajectory affects EU stability and domestic economic wellbeing.
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