The French government is facing pressure to increase education funding as it prepares measures worth 43 billion euros ($48.06 billion) to improve public finances in the 2027 budget, targeting a reduction in the deficit to 5% of GDP from an expected 5.4% this year, amid protests and school closures on Thursday over teacher shortages and deteriorating buildings.
The number of closed schools fell from 224 on Thursday morning to 157 by midday, while the Education Ministry said 96% of schools were open. Demonstrations continued as the protest movement entered its third week in cities including Lille, Rennes, Nantes, Paris, Toulon and Marseille, despite lower turnout in some cities than in previous actions.
French Prime Minister Sébastien Lecornu pledged on Wednesday evening to deliver concrete, swift and funded responses by the end of this month. Education Minister Édouard Geffray announced work on an emergency plan to replace absent teachers and revise school timetables in an effort to contain the protests.
Calls for additional funding meet constrained budget
Sabrine Kharbash, a spokeswoman for the student union, called for an additional 10 billion euros ($11.18 billion), while the movement’s demands include increasing university places, renovating buildings and changing the university admissions system. Student leaders signaled plans for larger demonstrations next week.
These demands leave the government with options including reprioritizing appropriations, finding additional revenue or accepting a higher deficit. The 5% deficit target for 2027 remains above the European Union ceiling of 3% set for member states.
French public debt reached 3.6 trillion euros (about $4.02 trillion), equivalent to 119% of GDP at the end of the second quarter of 2026, according to the French statistics institute. Debt rose by 59.6 billion euros ($66.61 billion) during the quarter, following a larger increase in the first quarter.
Spending and taxes complicate deficit-reduction challenge
Public spending stood at 57.3% of GDP in 2025, compared with revenue equivalent to 52.2%, leaving the deficit at 5.1% after it reached 5.8% in 2024, according to calculations by the French statistics institute. Deficit reduction in 2025 relied mainly on tax increases worth 23 billion euros ($25.71 billion), according to the French Court of Audit, while spending continued to grow at a rate slightly above that of the economy.
Health payments rose 4.9% and pensions paid by the social security system and supplementary funds increased 3.5% in 2025. These increases come alongside needs linked to an aging population, defense and the digital and green transitions, according to the 2026 report on the International Monetary Fund’s consultations with the French authorities.
The International Monetary Fund said last July that the Iran war had begun to affect economic activity, while higher energy prices had pushed up inflation and weakened domestic demand in France. Slower activity is limiting growth in tax bases, while measures to support households and companies could increase spending and delay deficit reduction.
Fiscal pressures coincide with divisions in the French parliament. In a report issued last June, the Court of Audit said proposed corrective measures for 2026 had been weakened during their consideration by the legislature, making it more difficult to keep the budget-reform path on track.
Debt interest competes with spending on public services
The cost of servicing government debt, including that of the railway company, is expected to reach about 72.93 billion euros ($81.51 billion) in 2027, up 10.32 billion euros ($11.53 billion) from the latest estimate for 2026, according to French budget documents. The cost could reach 93.4 billion euros ($104.39 billion) in 2029.
The government attributes the higher bill to the increase in debt and the gradual pass-through of higher interest rates to existing borrowing as it is refinanced, allocating a larger share of resources to servicing past obligations and narrowing the ability to fund education, public services and investment.
French affairs economist Kamil Al-Sariy links debt pressures and servicing costs to the renewed debate over not replacing some departing civil servants and retirees. He said the difficulty of finding replacements leaves some students without lessons in core subjects for long periods, amid a political dispute over the size of the state and the efficiency of education administration.
Financial concern has spread to the private sector: on October 7, the cost of protection against default on French banks’ debt rose compared with their European counterparts, while yield spreads on French corporate bonds widened amid concerns over the deficit, political divisions and social unrest.
Higher education appropriations alongside cuts to teaching posts
The draft education budget proposes allocating 64 billion euros ($71.53 billion) in 2027, excluding pension contributions, an increase of 1.2 billion euros ($1.34 billion), according to the Education Ministry. At the same time, the proposal includes a net reduction of 1,588 full-time teaching positions.
The ministry justifies the cut in teaching positions by forecasting a decline of about 180,000 students at the start of the next academic year, but proposes increasing total positions by 3,257, including support staff, students in teacher-training programs and trainees. Al-Sariy said the decline in the number of children in some areas did not eliminate differences in schools’ needs resulting from household migration and changes in population distribution.
Public spending per student in France, from primary school through higher education, reached $13,787 in 2023, compared with the OECD average of $13,601, based on purchasing power parity, placing the distribution and effectiveness of resources at the center of the debate over the crisis.
The direct costs of continued protests include repairing damaged property, securing institutions and making up missed lessons, after some demonstrations saw fires and damage to bus stops, while the continued opening of most schools limits the extent to which the protests can be considered a complete halt to economic activity.
The Bank of France forecast last September that the economy would grow 0.4% this year, 0.9% in 2027 and 1.2% in 2028, with domestic demand improving. Al-Sariy warned that differences in households’ ability to turn to private education and additional support could deepen skills gaps, affecting productivity and tax revenue in the future.
