Overview
- Prime Minister Sébastien Lecornu set a 5% of GDP deficit goal and outlined a targeted rise in the activity bonus of about €50 a month for over 3 million low‑income working households, with an annual cost estimated around €2 billion.
- There will be no increase in household taxation, with the income‑tax scale reindexed to inflation and retirees’ 10% abatement preserved, while student grants are maintained, €1 university meals start in May, and 2,000 Education Nationale posts are added.
- Housing measures include €400 million in extra support for social landlords, retention of MaPrimeRénov’, and plans to create a private landlord status, with the previously floated APL “white year” dropped.
- Ministry operating outlays are slated to fall in nominal terms compared with last year, with defense, education, justice, interior and agriculture protected, and local authorities asked to contribute €2–€2.5 billion, according to budget officials.
- Key financing levers remain in flux as ministers finalize figures for a corporate profits surtax—potentially sparing mid‑caps—while the Socialist Party hails “real advances,” employer groups seek clarity, and a choice between Article 49.3 and an ordinance is due by Tuesday.