Overview
- Prime Minister Sébastien Lecornu reversed his October pledge and, with “regret,” said he will engage the government’s responsibility this afternoon on the budget’s revenues, the first of three planned 49.3 uses.
- La France insoumise and the Rassemblement National will file censure motions, but the Socialist Party indicates it will not support them, while Les Républicains criticize unclear savings plans.
- Concessions that won over the PS include a higher prime d’activité, €1 university meals, dropping the income‑tax bracket freeze, and a surtax on profits of roughly 300 large firms expected to yield €8 billion in 2026, alongside a pledge not to raise household taxes.
- The government aims to contain the 2026 deficit to about 5% of GDP and promises tax stability for nearly all companies; President Emmanuel Macron endorsed the approach as Medef condemned the corporate surtax and the scrapped CVAE cut.
- After today’s activation on recettes, a second 49.3 on spending is planned this week before the text goes to the Senate and returns for a final 49.3, with passage contingent on censure motions failing.