France Targets 5% Deficit in 2027 as Debt Interest Reaches €91 Billion

France’s government is targeting a 5.0% public deficit in 2027 as projected debt-interest costs reach €91 billion, with the draft budget still awaiting parliamentary approval.

The proposed budget and social-security financing bill contain €43 billion in measures. The government’s broader fiscal effort to meet the deficit target is €54 billion. The 2027 target compares with a revised forecast of 5.4% of gross domestic product for 2026.

The proposal would slow increases for pensions above €1,281 a month, allowing adjustments below inflation but above 1% while preserving nominal pension amounts. The draft increases defense resources by €6.4 billion.

France projects debt-interest costs of €91 billion in 2027. Its medium- and long-term debt issuance program, net of buybacks, is set at €340 billion.

The deficit figure is a target, not a confirmed outcome. Parliament must approve the draft before it can take effect.