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French Budget Clash Deepens as Panel Alters Tax Plan and Government Files Pension Pause Fix

With no 49.3 and a fragile majority, Prime Minister Sébastien Lecornu has sent a corrective letter to add the pension‑reform suspension to the social‑security bill ahead of plenary debates that could trigger censure.

Overview

  • Finance Committee votes scrapped the proposed Zucman wealth tax and knocked out the plan to replace retirees’ 10% allowance with a €2,000 flat deduction, decisions that will be revisited in the chamber starting Friday.
  • Deputies also moved to index only the first income‑tax bracket, prolong the 20% minimum levy on high earners until the deficit falls below 3% of GDP, reinstate the exit tax, and rework the taxation of patrimonial holdings.
  • Budget rapporteur Philippe Juvin estimates the commission’s changes would add roughly €9 billion to the State budget, while the government still targets about €30 billion in 2026 consolidation.
  • Lecornu said a ‘lettre rectificative’ adding the suspension of the 2023 pension reform to the PLFSS has been sent to the Conseil d’État and is due for adoption at Thursday’s Council of Ministers, with a cost around €400 million in 2026 to be offset.
  • The social‑security plan remains highly austere, including about €7 billion in health savings and benefit freezes to shrink the Sécu deficit, as the minority government faces Socialist censure warnings and tight constitutional deadlines if talks stall.