French leaders proposed a new budget for 2027. Prime Minister Sébastien Lecornu was due to present it Thursday.

The plan aims to calm market worries. It targets a deficit of 5% of economic output in 2027.

That is down from a forecast of 5.4% in 2026. The budget would freeze public-sector wages.

It would also freeze all but the lowest pensions. It includes tax increases on income and VAT.

VAT is a tax added to goods and services. Tax increases make up most of the budget effort.

Public spending is still expected to rise slightly. So this is not an across-the-board spending cut.

News outlet Le Monde said passage is uncertain. This is because the government lacks a majority in parliament.

France's public debt was 119% of economic output in June. Rising borrowing costs are pushing leaders to reassure investors.