France proposes tax rises and spending cuts to tackle debt

Prime Minister Sébastien Lecornu presented the proposal to parliament on Thursday. It includes higher VAT and income tax, more tax on pensions, and limits or freezes on some benefits, including child benefit. The government hopes to save €43 billion and limit the 2027 budget deficit to 5% of GDP. The measures remain proposals, not approved changes. [1]

Lecornu, who had introduced earlier measures, has also put his overall savings ambition at €54 billion. He has warned that the cost of financing France’s debt is rising. [1]