Economic stagnation, rising debts and street protests in France

France, where economic growth has come to a standstill, public finances are shaken by debt, and protests are mounting, is preparing an austerity budget in the shadow of rising inflation, high borrowing costs, and the upcoming 2027 presidential elections.

Economic Stagnation and Debt Burden

The performance of the French economy this year does not offer positive indicators, and weak growth is expected to remain at only around 0.05 percent in 2026.

The country's indebtedness has reached 119 percent of Gross Domestic Product, and the total debt approaching 3.6 trillion euros is causing concern.

Rising Inflation and Cost of Living

According to data from the National Institute of Statistics and Economic Studies, the inflation rate rose from 2.6 percent in August to 3.4 percent in September.

This increase in prices particularly increases the pressure on low-income households while causing purchasing power to erode rapidly.

Growing Wave of Protests on the Streets

A new wave of demonstrations and strikes began across France on September 29 with the participation of firefighters, public servants, and students.

Unions plan to escalate their actions by organizing broader protests against the cost of living on October 17.

Austerity Budget and Savings Targets

The government aims to achieve a total of 54 billion euros in savings by reducing spending and reviewing unnecessary items.

The prepared budget bill is set to be presented on Thursday, which makes it difficult to meet the demands voiced by protesters.

Political Uncertainty and Elections

Prime Minister Sebastien Lecornu has a narrow margin of maneuver in getting the 2027 budget adopted and meeting social demands.

The government is concerned that the current wave of protests will intersect with the political mobilization ahead of the presidential elections scheduled for the spring of 2027.