Lecornu plans billions in cuts, wealthy to face new taxes

French Prime Minister Sébastien Lecornu plans to cut the budget by more than €30 billion in 2026 to reduce France's budget deficit to 4.7 percent of GDP.

According to the newspaper La Tribune, the budget is expected to generate savings of €31 billion through a combination of spending cuts and higher revenues, including a new tax measure targeting the holding structures of wealthy individuals. At the same time, pensions and social benefits are not expected to be adjusted in line with inflation.

France has the highest budget deficit in the eurozone, which is increasing pressure on the government. President Emmanuel Macron has already appointed five prime ministers in the past five years.

Lecornu recently resigned but was subsequently reappointed by Macron to form a government. He already faces two possible votes of no confidence, and it is unclear whether he has enough votes to survive politically until the end of the week.

Previous prime ministers Michel Barnier and François Bayrou failed precisely because they were unable to implement such cuts.

(reuters, max)