France is facing a France budget showdown as the government prepares its plans for 2027 while a presidential election draws closer.
Budget Minister David Amiel has warned that the country cannot delay hard spending choices until after the election. He said France must act now to control its large public deficit.
Amiel is preparing the 2027 budget, which is due to be presented to parliament in the autumn. He said fixing public finances is the top task for the government.
“Repairing France’s public finances is the number one priority,” Amiel said in an interview with the Financial Times.
He compared the state of France’s finances to a “powder keg”. His warning comes as the government faces pressure to spend more in key areas while also trying to reduce its deficit.
Amiel also called on political parties and future presidential candidates to show clear plans for public spending. He urged them not to make costly promises simply to win votes.
The next French presidential election is expected in April 2027. President Emmanuel Macron cannot seek a third straight term because of France’s term limits.
This means the campaign to replace Macron will become a key factor in French politics. Amiel warned that candidates should not use the election as a reason to avoid difficult budget choices.
The government is already under pressure from several sides. France has weak economic growth and high public spending. At the same time, the cost of servicing its debt has increased.
Prime Minister Sébastien Lecornu leads a minority government. His administration plans to raise defence spending next year. It also wants to protect green projects while trying to slow the rise in welfare spending.
The government faces a difficult balance. Defence needs have grown, while economic growth has remained weak. Higher interest costs are also putting pressure on the national budget.
Officials have warned that the deficit will not fall sharply this year. Rising interest payments are one reason. Higher military spending is another.
The economic impact of the war involving Iran is also adding to the pressure on France. The conflict has created wider risks for the economy and public finances.
The labour market is another concern. France’s unemployment rate reached 8.3 per cent in the second quarter. That was the highest level in almost six years.
Higher unemployment can place more pressure on public spending. It can also reduce tax income as fewer people have jobs.
Amiel’s warning highlights the tough choices facing France before the 2027 election. Cutting spending can be unpopular with voters. Yet delaying action could leave the next government with an even larger financial problem.
The budget minister wants opposition parties to take part in the effort to improve public finances. He said politicians who want to lead France should offer realistic plans for the economy.
The government must now work to build support for its 2027 budget. As a minority government, Lecornu’s administration may need help from other political groups to pass key measures.
The coming months could therefore bring a major political and budget battle. Parties will face pressure from voters while also being asked to support steps that may be unpopular.
France’s financial position is likely to remain a major issue during the presidential campaign. The debate will focus on how much the country should spend, where cuts should be made and how quickly the deficit can be reduced.
For now, Amiel is urging politicians to act before the election. His message is clear: France should deal with its financial problems now rather than leave a larger burden for the next president.
