Economic growth is viewed as a potential solution to budgetary challenges, although the government's growth forecast for 2025 has been revised down to 0.7%.

Further measures under consideration include imposing a minimum tax on high-income earners, targeting individuals earning over 250,000 euros and couples over 500,000 euros annually.

While the wealthiest 15% of retirees would face the most significant financial impact, the poorest retirees are unlikely to be affected as they often do not pay taxes.

The French government is contemplating the elimination of a 10% tax deduction for retirees as part of efforts to address a significant budget gap of 40 billion euros for 2026.

This proposal is part of a broader strategy to reduce a public deficit projected to reach 5.4% in 2025, with the goal of lowering it below 3% by 2029.

Public Accounts Minister Amélie de Montchalin has expressed support for this measure, which could potentially save the government around 4.6 billion euros annually.

The removal of the deduction is expected to generate approximately 4.5 billion euros in revenue for the state instead of pension funds.

If the deduction is eliminated, about 8.4 million retirees, particularly those in higher income brackets, would see an increase in their tax contributions, with an estimated 500,000 additional retirees becoming taxable.

This contentious proposal has faced opposition from the political right, despite its potential to generate substantial revenue.

In addition to the tax deduction changes, the government is also considering cuts to local government funding, which could save up to 8 billion euros and increase financial burdens on local authorities.

The government is also looking into reforms to unemployment insurance to improve the efficiency of the social safety net and address job vacancies.

Despite ongoing discussions about the deduction, no final decision has been made regarding its elimination, as stated by Catherine Vautrin, the Minister of Labor, Health, Solidarity, and Family.