Key facts
- Marine Le Pen proposed €140 billion in net savings by 2032.
- The plan aims to reduce France's public deficit to below 3% of GDP by 2030.
- Public debt is targeted to be reduced to 112% of GDP by 2032.
- Spending cuts are net of at least €30 billion in tax cuts.
- Public spending is to be reduced to below 50% of GDP by the end of the presidential term.
Marine Le Pen, a leading candidate in France's upcoming presidential election, has presented a revised budget proposal featuring €140 billion in net savings by 2032. This move aims to bolster the far-right's fiscal credibility amidst rising borrowing costs for France and concerns over its public finances.
The proposal includes a constitutional "golden rule" to limit future deficits and aims to restore a primary budget balance within 18 months of taking office. Le Pen's plan targets a public deficit below 3% of GDP by 2030 and below 2.5% by 2032, with public debt reduced to 112% of GDP from around 121% in 2027. Public spending is also slated to fall below 50% of GDP by the end of the presidential term.
Le Pen also proposed reducing France's net annual contribution to the EU budget to €5 billion and suggested discussions with the European Central Bank to ease borrowing costs once fiscal control is restored. Other proposals include tighter migration controls, corporate tax reductions, and cuts to energy taxes.
Following the announcement, France's 10-year bond yield saw a brief dip, falling 11 basis points to 4.75%. The government, led by Prime Minister Sébastien Lecornu, has also proposed a budget with €43 billion in new savings for 2027, but its passage through parliament faces challenges.