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The French government has proposed imposing strict spending caps in the 2027 budget, with increases limited to 0.4% across all sectors except defense, which will see an increase of 6.4 billion euros. The plan aims to reduce the deficit to 5% of GDP, although the government faces challenges due to a weak parliamentary majority and election-related concerns. The Ministry of Finance is working to assist the new president and the parliamentary majority in managing finances and staying within deficit limits, by setting spending increase caps at the local level and linking them to inflation.
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