🇫🇷Week of September 7

The French government is preparing the 2027 budget, the last before the presidential election, with a focus on reducing public spending. Sébastien Lecornu has launched a consultation on the deindexation of pensions, described as a 'participation in the recovery of public finances'. The government is studying options such as pension deindexation and a tax deduction for retirees.123

Roland Lescure has mentioned €30 billion in savings for the 2027 budget, with a strong contribution from retirees. He stated, 'We do not want to bludgeon retirees.' The government is considering deindexing pensions, which could save €6 billion, and is examining three scenarios, including one with three different rates.45678

The planned measures could affect certain French people, with the government studying how to determine who will be targeted. The deindexation of pensions and a tax deduction are among the pistes being examined. The budget is seen as a major project for the autumn.932

The French government has revised its economic growth forecast for 2026 down to 0.5 percent, the third such revision in six months, and now expects 1 percent growth in 2027. The revision was announced by Roland Lescure, the minister responsible for the budget. The government of Sébastien Lecornu is hoping for a slight economic recovery in 2027.1234

Inflation in France is now projected to exceed 2 percent in 2026, higher than the forecast previously made by the Finance Ministry (Bercy).1

For the 2027 budget, Roland Lescure aims to achieve 30 billion euros in savings without "clobbering retirees." The government plans to save 6 billion euros on pensions in 2027.56

Radio France employees are on a two-day strike and refuse to allow a place for Charles Sapin, a senior figure at Valeurs Actuelles, at the public broadcaster. The dispute centres on his recruitment to France Inter, with staff at the station walking out in opposition.123

Around 300 artists and public figures signed a tribune supporting the strike and protesting Sapin's arrival at France Inter. L'Humanité described the signatories' stance as treating the hiring as "the symbol of the liberation of racist speech."45

France Inter staff said they felt "trapped" by the recruitment, according to Libération, which reported the walkout under the headline that the station is on strike against Sapin's hiring. The Parisien reported that Radio France employees still refuse to give a place to a Valeurs Actuelles executive.21

Programmes at Radio France were disrupted because of the strike movement, franceinfo reported. The broadcaster's output was affected as the two-day action continued.6

Jean-Luc Mélenchon has proposed cancelling the French debt. Bank of France governor Emmanuel Moulin warned that erasing part of the debt would be "illegal, dangerous and useless."123

European Central Bank president Christine Lagarde said cancelling the French debt held by the ECB would be "a pure violation" of the EU treaty. The warning was framed around the 2027 presidential election.4

Moulin's assessment was reported across French outlets, with Le Revenu examining why he judged the Mélenchon proposal illegal. The Bank of France separately described France as "not in danger but in an unsatisfactory situation" on growth.25

Marianne, a right-leaning outlet, criticised Mélenchon's debt-freeze idea, saying that in trying to revolutionise the euro he ends up "reinventing lukewarm water."6

Houthi rebels in Yemen said they attacked a military base in Saudi Arabia. The claim was reported by France 24, Le Monde, Le Figaro, RFI, Boursorama, Ouest-France, Yahoo Actualités, and The Times of Israël.123456789

The Houthis said the attack was in retaliation for Saudi-led bombardments in Yemen. Le Monde reported the claim as a response to Riyadh's strikes.2

La Tribune reported that access to the Suez Canal has fallen into the hands of the Houthi rebels, raising questions about the risks. L'Express warned that after the blocking of Hormuz and Bab-el-Mandeb, 'we are approaching the worst-case scenario.'1011

Ouest-France reported explosions in the Strait of Hormuz and attacks in Saudi Arabia as part of the latest developments in the Middle East war.7