The French government has announced plans to limit the growth of most public spending by 2027, as expenses for defense and servicing public debt increasingly occupy a larger share of the budget:
According to the Ministry of Finance, total state and public agency expenditures are expected to reach €708.4 billion ($812.2 billion) next year. Ministers have been instructed to ensure that the growth of expenditures for most departments remains below the level of inflation:
The ministry estimates that expenses for servicing public debt will rise to €74.2 billion in 2027, up from €64.8 billion in 2026. Defense spending will increase by €6.4 billion in accordance with France's military planning law:
Budgets for non-defense ministries will increase by only €1.5 billion, the ministry reported. The government aims to restore the stability of public finances following a budget deficit equal to 5.1% of GDP recorded in 2025 and a public debt reaching 115.9% of the economy's volume:
In addition to defense spending, a small increase is also expected in funding for environmental protection, education, security, and justice. At the same time, funding for employment policies will be cut by €2.8 billion, and expenses for development assistance programs will also be reduced:
The ministry noted that local self-government bodies will be offered support to maintain budgetary constraints before the bill is presented to parliament in early October:
Social security expenses continue to pose the greatest challenge. Government forecasts indicate that these will rise by €17 billion in 2027, reaching €838.3 billion and exceeding inflation rates despite the planned savings measures:
The established maximum expenditure thresholds set the stage for serious political battles in parliament over the budget, which will commence in October ahead of the presidential elections in 2027:
