French PM vows to cut public spending by €54 billion to reduce deficit

France's prime minister promised Thursday that the government will reduce the country's deficit next year by cutting public spending by €54 billion ($62 billion) in 2027. But Sébastien Lecornu insisted his plans did not amount to austerity, as high fuel prices cause renewed social tensions just months before the presidential election. Read moreFrench candidates race to claim the cost-of-living issue ahead of 2027 vote In an interview with the Le Figaro business newspaper, he said the cuts will bring the public deficit down to 4.8 percent of gross domestic product excluding defence spending, and five percent including military spending. The French government initially aimed to cut the deficit from 5.1 percent of GDP last year – one of the highest in the eurozone and above the three-percent limit set for EU members. But the government acknowledged on Thursday that it will likely rise to 5.4 percent. The 2027 budget takes "an assertive stance on cutting public spending in a country that relies too heavily on it", Lecornu told Le Figaro. "It is a political risk, I am not unaware of that. But we are a long way from austerity!" the prime minister added. The jump in global oil prices abov...