French Prime Minister Sébastien Lecornu has publicly denied reports that his government plans to make major spending cuts in the 2027 national budget, calling claims of reductions to welfare, student housing, and tax credits completely false.
Writing in a social media message on X, Lecornu dismissed recent speculation regarding potential measures, including the elimination of student housing allowances, freezes to social benefits, and increases to income tax. He said criticizing government policy is legitimate, but inventing measures to cause alarm among the French public is not.
The Prime Minister specifically addressed rumours concerning the cancellation of the Personalized Housing Assistance for students, the freezing of the Active Solidarity Income welfare payment and the minimum senior pension, changes to personal service tax credits, and income tax hikes. He stated that all of those claims were false.
Student Concerns and Budget Timeline
Student organisations in France had recently expressed deep concern over a government-commissioned report. The document had explored proposals to factor parental income into the calculation of student housing assistance, which provides financial aid to young people renting accommodation across the country.
Lecornu emphasized that the 2027 budget remains under preparation. He said that actual decisions would be announced transparently only after they have been formally made. The government intends to present the draft budget to the French Parliament for debate and adoption in the autumn.
Fiscal Deficit and Public Debt Pressures
The budget discussions take place against a backdrop of rising interest rates and mounting national debt. Lecornu had previously described France's debt and deficit levels as alarming and serious during remarks made in late July, when he highlighted the urgent need to identify public savings.
The head of government acknowledged late last month that he was not optimistic about meeting a deficit target of 5% of gross domestic product in 2026. Official estimates projected the national deficit at 5.1% of GDP in 2025, while Lecornu confirmed he has not yet established a formal deficit target for the 2027 fiscal plan.
