Prime Minister Sébastien Lecornu’s government has presented a budget with €43 billion in spending cuts, aiming to reduce France’s deficit to 5% of GDP without raising taxes. This year’s deficit is expected to reach 5.4% of GDP, missing the initial 5% target.
The counter-proposal from Mélenchon’s France Unbowed includes €106.4 billion in additional revenue and €81.7 billion in further spending, according to Coquerel, leaving about €25 billion to reduce the deficit.
France’s current center-right government is expected to pass its budget through the country’s hung parliament either by invoking a constitutional mechanism that allows the executive to pass legislation without a vote or by executive order. Mélenchon said his first order of business if elected in May would be to draft a new budget, which he hopes to pass in summer 2027.
France Unbowed advocates for a reduction of France’s contribution to the European Union, which presidential frontrunner Le Pen also wants to cut by €11 billion, though Coquerel clarified that he had not included a potential rebate in his economic forecasts.
Mélenchon intends to use the contribution as leverage to push for revised EU treaties, including scrapping the 3% deficit target for member countries and allowing national governments to adopt protectionist policies.
Critics, including Lagarde, said Mélenchon’s debt proposal was “dangerous” and potentially illegal because it could amount to direct financing of member countries by the ECB, which is prohibited by European treaties.
