Budget 2027: Bercy Tightens the Belt on All Ministries Except Defense

To wage war, you need three things: money, money, and more money. Bercy has communicated its budgetary decisions to the ministries in preparation for the 2027 budget, and the message is clear: excluding Defense and debt service, the total increase in state spending will be capped at 1.5 billion euros, reaching 304.1 billion. This figure needs to be put into perspective: the expected inflation for 2027 is around 1.7% according to the Bank of France, nearly four times the leeway granted to all civilian ministries. In practice, this translates to a decrease in constant euros for almost the entire administration. Key points of this article:

• Bercy has issued budgetary decisions for 2027, capping the increase in state spending at 1.5 billion euros.

• Only the Ministry of the Armed Forces escapes budgetary austerity, while France's public debt reaches an alarming level.

The logic of the circular, revealed by Public Sénat, is clear once examined in detail. Only the Ministry of the Armed Forces is exempt from the austerity measures, in a geopolitical context that compels Paris to maintain its rearmament trajectory.

Everything else—education, health, justice, local authorities—must cope with a budget that does not even cover inflation. The ministries have also been instructed to better control their staffing levels, a classic move in tight budgetary exercises. Nothing new under the sun at Bercy, but the extent of the constraint this year stands in stark contrast to previous exercises.

The Debt, a Permanent Background to the Exercise

This tightening does not come out of nowhere. France's public debt is close to 117.5% of GDP, and the accompanying interest burden weighs increasingly heavily in each finance law. The state deficit has already reached 106.8 billion euros in the first half of 2026.

A tightening circle: the larger the debt grows, the more the service of that debt consumes the budget, leaving less for everything else. Bercy knows this, hence this circular that sacrifices almost everything except the military on the altar of the promised return to below 3% deficit by 2029.

Bitcoin, a Safe Haven Mentioned by a Growing Number of Savers

This tense budgetary climate is not without effect on certain asset allocation decisions. Faced with a debt that is growing faster than growth and rising state borrowing rates, some savers and institutional managers are looking towards assets whose supply does not depend on a parliamentary vote. Bitcoin, capped at 21 million units by design, is part of this discussion, alongside gold, which is also navigating near its records. There is no indication that this shift will be massive or rapid, but the argument for monetary dilution, long marginal in France, is gaining traction even among traditional financial analysts.

Ministerial decisions alone will not be enough to correct the trajectory. The parliamentary debate on the 2027 budget will open in the fall, during the pre-presidential period, a timeline that promises tense negotiations against the backdrop of rising debt.