French Assembly Commission Approves Emergency Budget with Income Tax Adjustment

The special law ensures state continuity after the government's censure, while debates over tax indexation spark constitutional concerns.

The French National Assembly's finance commission approved a special law to maintain government funding following the censure of Prime Minister Michel Barnier's administration.
The law allows the government to continue collecting existing taxes and authorizes public spending and borrowing based on the 2024 budget framework.
An amendment to index income tax brackets to inflation was adopted, aiming to prevent nearly 400,000 households from becoming newly taxable in 2025.
The amendment faced criticism from Macronist deputies and legal experts, who argued it could be deemed unconstitutional by the Council of State.
The full Assembly will debate the law next week, with the Assembly's president set to rule on the amendment's procedural validity over the weekend.