France intends to cut public spending by €54 billion in 2027 to bring its deficit under control, Prime Minister Sébestien Lecornu announced on September 17. But this plan comes at a time when the nation’s already-struggling workforce is protesting over spikes in energy prices and the cost of living.
Per Lecornu, France’s 2027 budget would include the multi-billion savings drive as, without cost-cutting measures, “the deficit would exceed 6.5% of GDP”. Meanwhile, the government is targeting a 5% deficit cap next year.
The PM’s plan also includes freezing the civil service pay index, which on its own, will save up to €2 billion.
Workers had already taken to the streets before Lecornu announced the savings plan. On September 15, thousands of police officers marched from the Champs-Élysées to the National Assembly in a protest organised by the Alliance Police Nationale labor union, calling for an immediate 7% salary increase and a higher risk bonus for officers.
The union’s representatives met with Interior Minister Laurent Nuñez the same day. While no budgetary commitments were made, Alliance Police Nationale Secretary-General Fabien Vanhemelryck said the authorities were “open-minded” to their grievances and “working on a plan”.
Alliance Police Nationale estimates that improving police pay and working conditions would require an additional €300-500 million.
Energy workers have also taken industrial action over plans to review the ‘tariff agent’ – a historical benefit that provides discounted electricity rates for active and retired employees in the sector – following recommendations by the French Court of Auditors to end the benefit. Following a massive walkout on Monday, they protested outside the Ministry of Economy and Finance.
South of France, fishermen blocked access to ports after a two-day protest over fuel costs threatening their profitability. Following six hours of negotiations on September 17, they agreed to lift the blockades after the government promised further support.
Junior Fisheries Minister Catherine Chabaud announced that future fuel aid will reflect changes in fuel prices, and fishermen with cash flow problems would be granted zero-interest loans.
The government had already extended emergency fuel subsidies through the end of the year for the agriculture, fishing, and construction sectors.
Although the mid-September protests have died down, further industrial action is expected throughout France this month. A nationwide public-sector strike is already scheduled for September 29, just days before the 2027 budget is due before the National Assembly. Major trade unions, from the General Confederation of Labour (CGT) to the National Union of Autonomous Trade Unions (UNSA) are expected to participate.
CGT Secretary-General Sophie Binet has criticised Lecornu’s proposed freeze on the civil service pay index, calling it a “scandal” that only confirms the necessity of the September 29 action.
The timing puts the government in a tight spot, as it needs to cut spending to contain a deficit that is already under pressure, but rising costs simultaneously increase demands for higher wages and subsidies.
France’s borrowing costs are compounding that pressure. The country faces €65 billion in interest payments this year, according to the Financial Times, with a meagre 0.5% growth.
That leaves the government with a dilemma: how much can it cut when workers and businesses require more support to survive rising costs? With each concession it makes, the government’s savings target slips further out of reach.
Yet without that spending, France risks further strikes and journées noires – “black days”, when unions and protesters coordinate blockades to bring the country to a standstill – that could cost the country far more in the long run.
Featured image: Alliance PN via X.
