French PM's planned 2026 budget cuts could slow growth, experts say
"The scale and duration of the planned budgetary consolidation would be unprecedented, particularly outside a period of crisis recovery or robust growth," wrote Hadrien Camatte and Emilie Gorguet, economists at the investment bank NATIXIS, in an analysis on the subject. "The measures planned to cut spending are very ambitious, while some projections of increased tax revenue seem overly optimistic – particularly those based on combating tax and welfare fraud."
Specifically, the government has planned total savings of €43.8 billion for 2026: €20.8 billion in spending cuts (distributed across the state budget, government institutions, local authorities and the social welfare system), €15.9 billion in new revenue and taxes (including €2.3 billion from anti-fraud measures), and €7.1 billion linked to a "blank year," meaning one in which the rates of pensions and social benefits is frozen at 2025 levels rather than adjusted for inflation.
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