Tax increases and spending cuts total amount France plans 60 billion euros with the 2025 budget in an effort nto reduce the deficit from 6.1% of GDP to 5%.

Specifically, the new government of France plans to cut spending by around 40 billion euros and yes raise taxes to bring in another 20 billion euros next year in an effort to reduce the country’s massive public debt, government officials said Wednesday.

Paris hopes this 60 billion euro fiscal adjustment will reassure Brussels and financial markets that France is serious about reducing its huge deficit, which is expected to reach 6.1 percent of GDP this year. But the draconian cuts could hurt business and spark widespread protests in France.

While there are no details on the proposed spending cuts, government officials – who spoke on condition of anonymity – told reporters at a briefing that they plan to cut around 20 billion euros from ministerial budgets, delay adjusting pension payments for inflation until July and make health spending more efficient.

The prime minister has repeatedly promised to be honest with the French about the state of the country’s finances, including during his first speech to parliament on Tuesday. In this speech, Barnier announced that France it will take until 2029 to comply with European Union spending rules that require a deficit below 3% of GDP. The previous government had promised to meet the deficit target by 2027, a deadline many experts considered unrealistic.

The European Commission last year placed France under the so-called excessive deficit procedure for excessive spending. Paris has until the end of the month to send Brussels a credible debt reduction plan. French officials believe the cuts announced Wednesday will sufficiently reassure European negotiators.

Barnier’s government plans to finalize its budget for next year on October 10.