FX.co ★ France Targets Deficit Cut to 4.7% by 2026 in New Budget Plan

French Prime Minister Sebastien Lecornu's government is poised to present its budget on Tuesday, targeting a reduction in the deficit to 4.7% by the end of 2026, as reported by La Tribune on Monday. The budget plan aims to achieve total savings of EUR 31 billion, comprising EUR 17 billion in spending reductions and EUR 14 billion in increased revenue. Key measures include the introduction of a new tax on holding companies typically utilized by wealthy individuals. Additionally, the budget outlines that pensions and social benefits will not increase in line with inflation, signaling an effort to curb public expenditure while enhancing fiscal responsibility. Lecornu, who resigned last week after a mere 27 days in office only to be reappointed by President Macron, is the fifth prime minister to serve under Macron in the last five years. He now confronts two imminent no-confidence votes and faces uncertainty regarding his ability to maintain governmental support.