Overview

• Amélie de Montchalin pledged that the 50% income tax credit for 26 childcare and elderly support services will remain intact in next year’s budget.
• The government is evaluating the scope and reimbursement rate of personal services tax credits to discourage undeclared work and ensure responsible use of public funds.
• Prime Minister François Bayrou is set to unveil detailed budget orientations by July 14 to drive down the public deficit from an expected 5.4% to 4.6% of GDP.
• Officials favor spending cuts over tax hikes and are scrutinizing allocations in all ministries, including those under multi-year programming laws.
• Plans under discussion include further civil service reductions, building on a 25% headcount cut at the DGFiP over the past decade.