Sébastien Lecornu proposes CVAE cut for 2026 budget
Minister Delegate Sébastien Lecornu announced a proposal to cut the CVAE, a production tax on companies, as part of the 2026 budget. This comes amid rising political pressures before government formation. Calls for compromises with the left, especially the PS, aim to avert a censure motion.
On October 4, 2025, Sébastien Lecornu's entourage, the Minister Delegate for Foreign Trade and Attractiveness of Territories, revealed a key proposal for the 2026 budget: a reduction in the business value-added contribution (CVAE), a tax on company production. This measure aims to ease the fiscal burden on economic players amid tense budget negotiations.
Meanwhile, Éric Lombard, CEO of the Caisse des Dépôts, advocated for compromises with the left, starting with the Parti Socialiste (PS). He emphasized the need for constructive dialogues to progress on the budget and avoid deadlocks. However, the PS appears caught in a trap by this approach, as analyses suggest Lecornu's proposal could force the party to choose between support and firm opposition.
Ahead of government formation, Les Républicains and MoDem are ramping up pressure, demanding concessions. PS leader Olivier Faure stated he is ready to file a no-confidence motion if the political landscape does not shift, saying: « If the situation does not change, we will be ready for censure. »
A broader debate concerns the abandonment of Article 49.3 of the Constitution, described as a praiseworthy but incomplete initiative by commentators. This provision, allowing the government to pass bills without a vote, had faced criticism for overuse. These developments highlight the fragile balance between the majority, opposition, and economic partners for the 2026 budget.