Prime Minister Lecornu initiates talks on pension de-indexation to aid 2027 fiscal balance

Prime Minister Sébastien Lecornu has launched a formal consultation to involve retirees in the effort to balance France’s public accounts for the 2027 fiscal year. A letter, secured by one outlet, tasks the ministers of Action and Public Accounts, Labour and Solidarity, and the delegate for Relations with Parliament with opening negotiations with the presidents of parliamentary groups. The discussion will explore several measures: full or partial de-indexation of certain pensions, a differentiated indexing scheme, and an adjustment of the 10 % tax deduction currently applied to pension income.

Lecornu highlighted that the full indexing of pensions constitutes a major fiscal burden for the 2027 budget, prompting the government to seek ways to reduce it. The initiative signals heightened sensitivity at Matignon ahead of upcoming budget debates. By targeting pension reforms, the government hopes to secure additional revenue without raising taxes on other groups.