World

Budget: Lecornu pushes for structural reforms before 2027 despite 'severe' deficit

Herz — World Desk · 22 July 2026 at 07:02 · 30s summary · 4 min read

The essentials

In an interview published July 22, 2026 in Paris Match, French Prime Minister Sébastien Lecornu announced plans to pursue 'structural reforms, even modest ones' in the upcoming budget without waiting for the 2027 presidential election. He describes France's debt and deficit levels as 'concerning, even severe' and expresses pessimism about meeting the 5% GDP deficit target for 2026. His proposals include revising pharmaceutical reimbursement rates, introducing digital spending incentives between ministries, and making climate adaptation a priority in territorial funding. Environment Minister Monique Barbut may leave the government over a pesticide policy disagreement.

Lecornu plans structural budget reforms before 2027 without waiting for the presidential election
Prime Minister describes French debt and deficit as 'concerning, even severe'
2026 deficit target of 5% of GDP is at risk and unlikely to be met
Proposals include reduced pharmaceutical reimbursement and digital ministry spending incentives
Environment Minister Barbut may resign over disagreement on pesticide policy

Illustration image — Spitzl, CC BY-SA 3.0, Wikimedia Commons

What we know

Prime Minister Sébastien Lecornu declared his intention to pursue 'structural reforms, even modest ones' in the next French budget. He made these comments in an interview published July 22, 2026 in Paris Match, as reported by France 24. His approach aims to act without waiting for the 2027 presidential election.

Lecornu wants the budget adopted 'during winter' to avoid hamstringing the incoming president once they take office. He warned that candidates who blocked any budget in autumn 'would take responsibility for condemning their own first year in office'.

The Prime Minister described France's debt and deficit as 'concerning, even severe'. This level, he said, 'limits our freedom of action and places us in a position of vulnerability'. He expressed pessimism about deficit targets for 2026 and 2027.

Economy Minister Roland Lescure had already judged in early July 2026 that the 5% of GDP target for 2026 was 'difficult to achieve'.

Lecornu cited two external factors weighing on public finances. First, the war in Iran and its impact on energy prices. Second, the additional costs of French military engagement in the Gulf.

Lecornu's proposals

On revenue, the Prime Minister advocates fiscal stability. He did not rule out questioning the effectiveness of certain tax breaks—advantages that allow taxpayers to reduce their taxes through deductions or credits. He also intends to intensify efforts against tax fraud.

On healthcare, Lecornu proposed reducing reimbursement for medications with limited therapeutic benefit. He also considered asking those who buy more than 50 boxes of medication annually or consult a doctor more than 25 times per year to contribute more. Socially vulnerable individuals would be protected.

To encourage ministries to invest in digital technology and artificial intelligence, Lecornu proposed a budget incentive system between administrations.

He also called for 'greening' the FCTVA, France's compensation fund for value-added tax. This mechanism is a transfer from state revenues designed to finance investments by local authorities. Lecornu wants to prioritize spending on climate change adaptation.

Timeline

Early July 2026
Economy Minister Roland Lescure judges the 5% of GDP public deficit target for 2026 'difficult to achieve'.
July 22, 2026
Prime Minister Sébastien Lecornu publishes an interview in Paris Match: he announces budget reforms before 2027, describes debt as 'severe', proposes measures on healthcare, digital, and the FCTVA, and publicly manages the crisis with Minister Barbut.