French 2027 Budget Sees Moderate Public Sector Cuts and Holds Tax Reform for Ultra-Wealthy

The French 2027 budget proposal includes a reduction of 77 full-time equivalents primarily within the economic and financial ministries. This reduction, mainly undertaken by the Directorate General of Public Finances, represents an effort to optimize public administration resources while avoiding extensive cuts. Despite the trimming, the budget plan does not end job eliminations but slows their pace, maintaining a cautious approach toward public sector staffing.

In parallel, a significant tax reform aimed at ultra-wealthy shareholders, specifically the overhaul of the apport-cession mechanism, has been preserved thanks to support from left-wing deputies. The apport-cession, often used to circumvent taxes during company sales, faces stricter regulation under the new budget law. Prior to parliamentary examination, the reform text was slightly modified but remains fundamentally intact, reflecting political consensus on targeting fiscal loopholes for the wealthy.

These developments illustrate the French government's balance between fiscal prudence in public employment and a political will to tackle tax avoidance among the ultra-rich as part of the 2027 financial strategy.