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France Sets Out Compromise Budget as Lecornu Weighs 49.3 or Ordinances

The next step is securing a Socialist non‑censure to pass the plan without a vote.

Overview

  • Prime Minister Sébastien Lecornu unveiled a revised plan targeting a 2026 deficit near 5% of GDP after Assembly debates were halted.
  • The package raises the prime d’activité by about €50 a month for more than 3 million low‑paid households, a measure estimated at roughly €2 billion a year.
  • Household taxes would not rise, with the income‑tax scale reindexed for inflation and the retirees’ 10% abatement preserved, while €1 university meals start in May and 2,000 education posts are added.
  • Housing measures include €400 million more for social landlords, scrapping an APL “blank year,” and maintaining MaPrimeRénov’, which ministers say totals about €3.5 billion in 2026.
  • The government plans nominal spending cuts across most ministries and a €2–2.5 billion contribution from local authorities, as financing talks continue on a possible big‑company profits surtax before a Tuesday decision on 49.3 or ordinances.