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Lecornu Unveils ‘Compromise’ Budget With Tax Pledges and Student Aid as Assembly Stalemate Deepens

The government seeks Socialist backing to avoid censure by pairing household safeguards with a deficit target near 5% of GDP.

Overview

  • Parliamentary debates were suspended after the executive deemed a normal vote on the 2026 budget impossible in the National Assembly.
  • The Prime Minister left the adoption method undecided between article 49.3 and ordinances, with a decision expected by Tuesday.
  • Core measures include an average €50‑per‑month rise in the prime d’activité for over three million low‑wage households, inflation indexation of income tax brackets, and preservation of the retirees’ 10% abatement.
  • Youth and housing provisions feature €1 university meals for all students starting in May, 2,000 additional education posts, €400 million for social housing, maintained student grants, and continuation of MaPrimeRenov’.
  • Lecornu set a deficit objective around 5% of GDP and blamed LFI and RN for obstruction, as the Socialist Party welcomed “real advances” but kept pressure, with other opposition figures denouncing the plan.