Overview

• Lecornu formally withdrew the plan to scrap two public holidays and invited social partners to reopen talks on financing the 2026 budget.
• He said he is ready to work on “fiscal justice,” with reporting indicating potential wealth-tax measures to secure Socialist backing.
• Fitch cut France’s sovereign rating to A+ from AA-, citing political instability and budget uncertainty alongside heavy debt and a 2024 deficit of 5.8% of GDP.
• Lecornu took office after Parliament ousted François Bayrou, whose package sought about $51.6 billion in cuts including the holiday eliminations.
• He is pursuing a frank parliamentary debate with Socialists, Greens, and Communists and urged them to distance themselves from La France Insoumise.