The French government is set to unveil its budget plan, with 54 billion euros in fiscal "effort" measures once again testing market nerves.

The French government is set to unveil a plan to sharply reduce its budget deficit, a political battle that could endanger the prime ministers job and heighten investor concerns over Frances debt. In its final fiscal plan before next years election, French government ministers will on Thursday set out details of 54bn worth of fiscal effort aimed at curbing runaway spending and bringing the budget deficit down from 5.4 per cent of GDP this year to 5 per cent in 2027. Prime Minister Sbastien Lecornu has signalled he will seek savings from sensitive areas including pensions, public sector pay and state-funded sick leave benefits. He has also said a one-off tax on large companies introduced in 2025 will be extended at least in part, despite opposition from business groups.