PUBLIC FINANCE · 30% TARGET ·

Ban tax cuts financed by debt

The financing lock connecting the 30% tax target to the constitutional ban on ordinary structural deficits.

Ban tax cuts financed by debt
Ban tax cuts financed by debt

A simple rule for every future permanent tax cut

No permanent tax or contribution cut may enter into force if, all else equal, it would make the structural budget deficit.

Implementing law should require multi-year financing certification, identify the recurring spending reduction or revenue source, and automatically pause any not-yet-activated step if savings fail to materialise.

What the rule does not ban

It does not ban a constitutionally authorised temporary crisis measure or a cut matched by a certain structural saving. It bans shifting the financing of today’s tax promise onto future taxpayers through debt.

Official sources and references

  1. INSEE — 2025 GDP: €2,991.1bn
  2. INSEE — compulsory levies: 43.6% of GDP in 2025
  3. INSEE — public expenditure 57.3% and revenue 52.2% of GDP in 2025
  4. INSEE — 2025 public deficit: €152.5bn, 5.1% of GDP