Mélenchon Cites Spain's Sánchez as Model for Fixing French Public Finances
Jean-Luc Mélenchon, the leading left-wing candidate in France's 2027 presidential race, said higher public spending can repair state finances, pointing to Spain. He also repeated his plan to write off part of the French debt held by the European Central Bank.
At a press conference on the 2027 state budget in Paris on Wednesday, October 14, French left-wing politician Jean-Luc Mélenchon pointed to Spanish Prime Minister Pedro Sánchez as proof that greater public spending can boost the economy and repair public finances. Mélenchon is the leading left-wing candidate in next year's French presidential election, so his budget approach shows what one of the main contenders for the presidency would propose.
"Ever since Spain adopted a budget focused on ecological and social growth, it has experienced steady growth and a decline in its debt," said the 75-year-old. He repeated his call for a demand shock driven by billions of euros in new state spending, and his proposal to write off billions of euros of French debt held by the European Central Bank. The idea has drawn criticism, including from ECB President Christine Lagarde, who called it "dangerous" and potentially illegal because it could amount to direct financing of member states, which European treaties prohibit.
What he proposes
Mélenchon wants to raise purchasing power through a higher minimum wage, a 10% raise for public-sector workers, a nationwide round of collective bargaining, higher welfare benefits and a monthly payment of €1,337 for every French student. His campaign calls the package €82 billion in "emergency spending."
Eric Coquerel, a Mélenchon ally who chairs the National Assembly's finance committee, outlined funding sources: a 2% tax on households worth more than €100 million and higher taxes on large inheritances. The counter-proposal from Mélenchon's party, France Unbowed, includes €106.4 billion in extra revenue and €81.7 billion in extra spending, leaving about €25 billion for deficit reduction.
Prime Minister Sébastien Lecornu's government, by contrast, has presented a budget with €43 billion in spending cuts, aiming to bring the deficit to 5% of GDP without raising taxes. This year's deficit is expected to reach 5.4%.
Spain's public debt is projected to fall below 100% of GDP in 2026, while France's stands at 119%. Even so, the cost of living, especially housing, remains a major concern in Spain.
Polls show Mélenchon neck and neck with center-right candidate Édouard Philippe in the race to reach a runoff against far-right frontrunner Marine Le Pen.
