France launches agricultural recovery plan, plans to allocate about 500 to 700 million euros in the 2027 budget

⑴ The French Prime Minister stated on Thursday that a plan for agricultural recovery will be proposed in the 2027 budget, with a scale of approximately 500 million to 700 million euros, though the specific amount is still provisional. ⑵ The plan is intended to support farmers affected by drought, and its funding is independent from the 1.3 billion euros emergency aid package announced last month, which will be covered by the current budget for 2026. ⑶ The French Ministry of Agriculture also stated last week that it will provide around 2 billion euros in interest-free loans to farmers to ease their financial pressure. ⑷ Ahead of next year’s presidential election, the French government is engaged in politically sensitive negotiations over the 2027 budget, with the extent of agricultural support becoming one of the key issues under debate. ⑸ The market is watching to see whether this plan can be implemented smoothly and whether there will be sufficient fiscal space for additional relief measures in the future.