On October 14, 2025, Prime Minister Sébastien Lecornu presented the 2026 finance bill, aiming to cut the public deficit to 4.7% of GDP through €14 billion in extra tax revenues and €17 billion in spending savings. The budget targets high earners, businesses, and social expenditures, while drawing criticism over its feasibility.
The 2026 budget project, submitted to the Council of Ministers on October 14, 2025, relies on a total effort of €30 billion to bring the deficit below 5% of GDP, according to the Haut Conseil des finances publiques (HCFP). Sébastien Lecornu defended a 'serious and reliable' text, but the HCFP deems the assumptions optimistic and targets ambitious, with a possible relaxation to 5% of GDP.
Among fiscal measures, freezing the income tax scale and CSG is expected to yield €2.2 billion, while extending the differential contribution on high incomes (CDHR) for one year—applied to households earning over €250,000 (single) or €500,000 (couple)—sets a minimum 20% tax rate. A new tax on patrimonial holdings, targeting tax avoidance structures, is projected at €2.5 billion. The surtax on large companies' profits is halved in extension, for €4 billion, and 23 obsolete tax niches will be eliminated, raising €5 billion. Taxes on small parcels (€500 million) and vaping products are planned.
On spending, a 2026 freeze on retirement pensions and social benefits, followed by a 0.4-point under-indexation from 2027, cuts the Social Security deficit to €17.5 billion from €23 billion in 2025. Health spending rises only 1.6% to €270.4 billion, with €7.1 billion in savings, including doubling medical franchises (€2.3 billion). Over 3,000 civil servant posts will be cut. Accelerating CVAE suppression costs €1.3 billion but supports SMEs.
Economy Minister Roland Lescure vowed to be 'intransigent' on the trajectory, facing debt at 114% of GDP and costs of €74 billion in 2026. The plan against social and fiscal fraud aims for over €1 billion, but the HCFP questions its credibility. Measures support farmers, like extending precautionary savings deduction until 2028.
