France has in recent years struggled to rein in spending and a debt burden that has grown from €2.3 trillion to more than €3.5 trillion and is becoming increasingly expensive to service as interest rates spike across the world. Lecornu, who vigorously opposes tax hikes on any segments of the population, said the country needs to find an additional €10 billion to finance the debt.
“The debt burden is weighing increasingly heavily on the budget equation,” he said.
The French government had initially planned on reducing its deficit to 4.7% of its gross domestic product (GDP) this year — but acknowledged last week that the figure would ultimately land above 5%. It also cut its growth forecast for this year and next year to 0.5% in 2026 and 1% in 2027.
The government targeted €30 billion in the 2026 budget and €60 billion the year prior.
Lecornu’s minority government will present its budget bill to lawmakers in the coming weeks, but getting it passed will be difficult without a governing majority and as the spring 2027 presidential election gets closer, which will incentivize parties to stake out their positions ahead of an electoral cycle.