Mélenchon outlines 2027 budget proposal

Jean-Luc Mélenchon, leader of the France Insoumise (LFI) movement, presented a "corrective budget" for 2027 during a press conference, proposing 106.4 billion euros in additional revenues and 81.7 billion euros in new expenditures. The budget aims to reduce the public deficit by 25 billion euros without causing a recession in economic activity.

Critique of past economic policies

Mélenchon described the proposal as a response to the "dominant culture" of "neoliberalism," accusing former and current presidents Macron, Hollande, and Sarkozy of orchestrating "the systematic and organized impoverishment of the state." He emphasized that the budget would include 25 billion euros allocated to debt reduction, aligning with a report by economists presented to Bercy.

Key expenditure measures

The budget includes measures to increase the salary index for civil servants (17 billion euros), indexing all pensions and social benefits, and increasing APL by 10% (8 billion euros). It also proposes a guaranteed income for young people in training equivalent to the poverty threshold (9.5 billion euros), the creation of 10,000 jobs in the national education system (500 million euros), and free school meals (3.6 billion euros).

Additional spending on social and healthcare issues

Additional expenditures would also cover an emergency plan for hospitals with the creation of 10,000 jobs (3 billion euros), a plan to end homelessness (3 billion euros), and the restoration of the ministry budgets to their 2017 level and indexing them to inflation (7 billion euros). 10 billion euros will be allocated to strengthen the means of fighting climate change and its consequences.

Reversing recent reforms

The abolition of the 2023 pension reform, which would bring back the retirement age to 62 years, would cost 9 billion euros, while the cancellation of previous reforms that reduced unemployment benefits would cost 3 billion euros.

Proposed revenue sources

On the revenue side, the budget proposes a "climate wealth tax" estimated at 10 billion euros, the abolition of the flat tax (9 billion euros), the "Zucman tax" on households with a net worth exceeding 100 million euros (15 billion euros), a tax on inheritances (20 billion euros), and reducing tax loopholes (22 billion euros).

Other financial measures

Additional revenues would also come from taxing stock buybacks and financial transactions (2.5 and 5 billion euros, respectively), cryptocurrencies (1 billion euros), and reforming corporate tax to make it more progressive, which is expected to generate 3 billion euros. The part of the CVAE abolished in the past would be restored, while the Gafam tax would be raised to 15%, and a tax on superprofits would come into effect.

Support from LFI Finance Committee

Eric Coquerel, president of the LFI Finance Committee in the National Assembly, stated that the proposed budget would inject more than 81 billion euros into the economy, thus achieving a 25 billion euro reduction in the deficit, which would be better than the government's plan.

Economic approach and future plans

Mélenchon emphasized that the budget would follow an "economic rationality" approach rather than dogmatism, aiming to be credible and consensual. The budget would bring the public deficit down to 5% of GDP by the end of 2027, aligning with the current government's plans. France Insoumise is expected to present its complete presidential program in November, with financial estimates to be finalized at the beginning of 2027.