The French government is reportedly considering new measures aimed at reducing public spending, including a potential freeze on some pensions and a reduction in the tax allowance for retirees. According to recent reports, the government plans to lower the ceiling for the 10% tax allowance that retirees receive from 4,439 euros to 3,000 euros. This change is expected to generate an additional 1.4 billion euros in tax revenue. Alongside this, officials are also considering freezing or limiting the rate of increase for certain pension payments, which would help reduce the overall budget deficit. Prime Minister Sébastien Lecornu has indicated that the financial burden on retirees will be less than the 6 billion euros initially proposed by the Minister of Public Accounts. He emphasized that "small pensions" would be protected from these changes. To help retirees contribute to the 54 billion euros in budget cuts expected by 2027, the government is looking at combining the reduced tax allowance with a freeze or slower increase in basic pension payments. The specific thresholds for these changes are expected to be set through a government decree. According to Le Monde, the proposed pension freeze would apply to retirees earning more than 2,034 euros per month. For those earning between 1,260 and 2,034 euros, pensions would increase at a slower rate than inflation—known as under-indexation. Retirees earning less than 1,260 euros would continue to see their pensions rise in line with inflation. However, these details have not been officially confirmed by the government, which states that no final decisions have been made. In recent years, French retirees have seen their pensions increase in line with inflation, resulting in a roughly 15% rise between 2022 and 2026. The Ministry of Finance has not provided specific details on the proposed changes, stating that the measures are currently under discussion in parliamentary consultations. The final budget proposals for the state and social security will be presented in a cabinet meeting on October 1st and will then be reviewed by Parliament.