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France Sets €30 Billion 2026 Budget Push as Parliament Opens and PS Withholds Censure

The package enters a volatile debate after the Socialist Party chose not to back immediate censure.

Overview

  • Economy Minister Roland Lescure said the 2026 plan targets roughly €30 billion in adjustments, including about €14 billion in new levies, with a goal of cutting the deficit to 4.7% of GDP next year.
  • The draft extends the 20% minimum tax on top earners (CDHR) and introduces a levy on family holdings aimed at up to 30,000 structures, expected to yield €1–1.5 billion.
  • Pensions would be frozen in 2026 and the retirees’ 10% income‑tax abatement would be replaced by a €2,000 allowance per person, shifting relief toward lower pensions.
  • The income‑tax scale would be held at current levels, a move Bercy says could add about 200,000 new taxpayers and raise roughly €1.9 billion in 2026.
  • The social‑security bill seeks sizable health savings and higher patient cost‑sharing, including a proposed doubling of medical franchises, as political bargaining intensifies over amendments such as the PS plan to reintroduce the ‘Zucman tax’ while RN pursues censure votes.