Prime Minister Sébastien Lecornu is taking a tougher stance as the 2027 budget preparations approach. In a policy letter addressed to all members of the government, he is asking ministers to thoroughly review the demands made by their departments, which he considers excessive given the state of public finances. The letter, revealed by Les Échos, comes as the government seeks to create a budget without tax increases while continuing to reduce the public deficit.
According to the Prime Minister's office, the budget conferences held in recent weeks have revealed over €30 billion in additional funding needs, nearly €24 billion of which is earmarked for new measures. The proposals from various ministries also include the creation of over 23,000 positions as early as 2027 and nearly 40,000 additional public sector jobs over the entire 2027-2029 period. The Prime Minister considers these figures incompatible with the objectives of restoring public finances.
Arbitration under severe financial constraints
In his letter, Sébastien Lecornu criticizes government departments for submitting requests that are insufficiently prioritized and disconnected from budgetary realities. He calls on each minister to regain control over budgetary decisions in order to identify clearly defined priorities, as well as opportunities for savings, reorganizations, and productivity gains. The Prime Minister emphasizes that controlling public spending is now a matter of national sovereignty in a context marked by geopolitical tensions, rising defense expenditures, and the European economic slowdown.
Three weeks of discussions will now begin between each ministry and the Minister for Public Action and Accounts, David Amiel. The goal is to identify several billion euros in savings before the final decisions are made by the Prime Minister's office. The government is seeking to reconcile several costly priorities, including strengthening defense spending, investments in the energy transition, and growing security and healthcare needs, all while keeping the public deficit under control.
The government plans to present the broad outlines of the 2027 budget in mid-July. Before then, a public finance alert committee is scheduled to meet at the end of June. Economic forecasts remain fragile as the war in the Middle East fuels uncertainty about energy prices and global growth. The Bank of France is expected to update its forecasts soon, while the government is currently maintaining its objective of gradually reducing the public deficit after an expected level of 5% of GDP in 2026.
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