France's government announced on Thursday a plan to rein in the growth of most public spending in 2027 as debt interest payments and defense commitments take up a greater portion of the budget.
The Finance Ministry set aggregate spending by the state and government agencies at €708.4 billion for 2027. In guidance issued to ministers, the ministry instructed that most departmental spending increases be capped below the rate of inflation.
Officials said debt interest charges are projected to rise to €74.2 billion in 2027, up from €64.8 billion in 2026. At the same time, defense spending is scheduled to climb by €6.4 billion under the country’s military programming law.
Excluding defense, ministerial budgets are slated to grow by only €1.5 billion in total, according to the Finance Ministry. The measures are framed as part of an effort to restore public finances after a 2025 deficit equivalent to 5.1% of GDP and debt equal to 115.9% of economic output.
Budget minister David Amiel described the package on franceinfo radio as a significant effort by the government and warned that without these measures the deficit would run out of control in 2027.
Beyond the defense increase, a few areas receive modest uplifts: environment, education, security and justice each receive slight spending increases. By contrast, employment policy faces a reduction of €2.8 billion and development aid spending is set to decline.
The ministry said local authorities will be asked to contribute to budget containment measures before the draft budget bill is submitted to parliament in early October.
Social security remains the main source of budgetary pressure. The government projects social security spending will rise by €17 billion to €838.3 billion in 2027, increasing faster than inflation despite the planned savings measures.
The spending ceilings are expected to set up a budgetary confrontation in parliament starting in October, ahead of the 2027 presidential election.
Context and next steps
The Finance Ministry’s numbers and ministerial instructions will form the basis of the draft budget bill to be debated in parliament in early October. Lawmakers will face choices about departmental ceilings as defense, debt servicing and social security absorb a growing share of public resources.