France’s conundrum: How to cut spending amid protests
Prime Minister Lecornu is pledging to improve schools at a time when the government seeks to save billions. France's dilemma can be seen across the EU: How to cut spending when citizens are demanding more from the state?
France is grappling with a conundrum as it attempts to cut spending amid ongoing protests by students. Prime Minister Sebastien Lecornu is under pressure to address class cancellations, overcrowded classrooms and deteriorating school facilities while simultaneously implementing an austerity budget. The government's plans to reduce the budget deficit, which stands at 5.4% of economic output this year and is projected to fall to 5% by 2027, involve cutting spending by billions of euros.
The cuts will affect the state, local and regional authorities, as well as the social sector. However, Lecornu faces a challenge: promising young people more government support while the government imposes austerity measures across the country. The education budget is expected to rise by €1.2 billion in 2027, while the government anticipates a decrease in the number of schoolchildren by 2035.
The financial markets are also skeptical, with the yield on 10-year French government bonds rising sharply. The upcoming presidential elections and the need for fiscal consolidation are further complicating the situation.
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