France's 2027 budget crisis: Socialists demand Lecornu urgently revise pension freeze plan
Leaders of France's Socialist Party are urging Prime Minister Sébastien Lecornu to amend the 2027 budget without delay, warning against relying on the far-right to pass it, as the government considers freezing pensions above €2,034 a month.
Socialists demand changes
French Prime Minister Sébastien Lecornu's proposed 2027 budget is facing sharp criticism from the Socialist Party (PS). According to Le Figaro, PS parliamentary leaders Boris Vallaud and Patrick Kanner, along with deputy first secretary Johanna Rolland, sent Lecornu a letter on Friday urging him to amend the budget text "without delay" to demonstrate the government's "willingness to compromise."
The letter criticizes a lack of "fiscal justice measures" and warns that France's economic, social and budgetary situation is serious — purchasing power is declining, poverty is rising, and public debt has reached its highest level since 1946.
Threat of frozen pensions
One of the most contentious issues is a possible freeze on pension increases, as reported by CNews. Labour Minister Jean-Pierre Farandou told Challenges magazine that the government plans to overhaul the pension indexation system. Pensions up to €1,260 a month (85% of the minimum wage) would still be fully adjusted for inflation. Pensions between €1,260 and €2,034 would receive only a partial increase that would not fully offset inflation, while pensions above €2,034 a month would not be increased at all in 2027.
Standard inflation-based indexation in 2027 would otherwise raise pensions by 2.5%, costing the state around €6 billion. By limiting full revaluation mainly to the smallest pensions, the government hopes to save €4.1 billion, according to Minister Farandou. Also under consideration is a reduction of the 10% tax allowance on pensions, from the current cap of €4,399 to €3,000 — a change that could add roughly €300 a year in taxes for a household with €40,000 in annual pension income.
Political deadlock
With no stable majority in the National Assembly, Lecornu may have to invoke Article 49.3 of the Constitution, which allows a bill to pass without a vote — but this would require either the PS or the far-right National Rally (RN) to refrain from a no-confidence motion. The Socialists warn that relying, even passively, on the RN would be a "political and moral mistake" just months before the presidential election. If talks fail, the government could also resort to budget ordinances to push through its original budget without any vote — a move without precedent under the Fifth Republic.
