The government is exploring several options for the 2027 budget to reduce the public deficit. The wealthiest retirees are being targeted: either an inflation-adjusted pension increase below the inflation rate or the removal of the 10% tax deduction on taxable pensions. According to the Drees, old-age benefits reached 426.7 billion euros in 2024, representing 14.6% of GDP. Without new measures, the deficit could approach 6% of GDP by 2027. Matignon is also considering cutting ministers’ indemnities and those of certain advisors to demonstrate that the executive branch is participating in the budgetary effort.
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