Paris – In a column for L’Opinion, far‑right presidential hopeful Marine Le Pen detailed a new fiscal framework she calls a “golden rule.” The proposal would tie lawmakers to a binding budget constraint, similar to Germany’s debt brake, and would be placed before voters in a future referendum.
How the rule would work
The amendment would require the annual deficit to shrink by at least half a percentage point of economic output each year. Le Pen says this trajectory would lower the deficit from the current 5.4 % of GDP to 2.9 % by 2032, the end of the next presidential term, and continue falling until the debt‑to‑GDP ratio, now at 119 %, reaches the 60 % target.
Exceptions would be tightly limited. A larger deficit could only be approved with a three‑fifths majority in parliament, and a second consecutive exception would trigger another referendum. The High Council of Public Finances would verify the assumptions behind the annual ceiling, while the Constitutional Council would reject any budget deemed “insincere.”
Fiscal ambition and political context
Le Pen’s plan arrives as investors remain wary of French public finances. The premium investors demand for ten‑year French bonds over German equivalents spiked above 150 basis points – the highest level since late 2011 – after the government’s 2027 budget bill offered little new relief.
Le Pen, who leads the polls for both rounds of the April‑May election, argues that her “golden rule” would restore confidence in France’s fiscal credibility. She also pledged to achieve €125 billion in savings over five years, net of tax cuts, insisting that neither growth nor tax increases can solve the debt problem.
Critics and challenges
Opponents warn that the aggressive cuts could strain public services and slow economic recovery. Some analysts note that the proposal does not specify when the referendum would be held or how the government intends to meet the steep reduction targets.
Nevertheless, Le Pen’s emphasis on a legally binding deficit rule aligns with a broader European trend toward fiscal discipline. If adopted, the amendment would give French voters a direct say in the nation’s budgetary path, a move that could appeal to citizens concerned about rising debt and the cost of living.
What’s next
Le Pen said her full fiscal programme will be outlined on Tuesday, with the “golden rule” as a cornerstone. The proposal will face scrutiny from the High Council of Public Finances and, ultimately, the Constitutional Council before any referendum can be scheduled.
For now, the French market watches closely to see whether the promise of a hard‑wired deficit cut can calm bond markets and reassure investors that the next president will deliver fiscal responsibility.
Original reporting: Appleton, WI News Feed (HLL/CB) — read the source article.
