Overview

• The government is considering an “année blanche” that would partially or totally freeze inflation-indexed spending across state and local budgets.
• Freezing pension indexation in 2026 could generate about €3 billion while halting increases to other social benefits could add roughly €1.5 billion in savings.
• A freeze on income tax brackets and the generalized social contribution is estimated to contribute an additional €2.8 billion toward deficit reduction.
• The proposed measures under the année blanche could unlock up to €28 billion in savings as part of a broader €40 billion target to reduce the deficit.
• Prime Minister François Bayrou is considering a public referendum on the année blanche austerity measures.