Prime Minister Sébastien Lecornu announced several measures on Friday evening to amend the 2026 budget project, hoping to secure a compromise with opposition parties and avoid censure. Key announcements include an increase in the activity bonus and the abandonment of unpopular tax reforms. He has given himself until Tuesday to finalize an agreement, without specifying whether he will use Article 49.3 or ordinances.
Prime Minister Sébastien Lecornu addressed the nation from Matignon on Friday, January 16, 2026, outlining directions for the 2026 budget amid stalled parliamentary debates. He expressed his «real disappointment», «sadness», and «worry» over the blockages, attributing them to a «cynical and deliberate» strategy by La France Insoumise (LFI) and the Rassemblement National (RN). «We will not give up on compromise», he affirmed, emphasizing a new approach for a text that «can bring people together».
Among the concessions, Lecornu acknowledged the initial reduction of the activity bonus as an «error» and announced its increase by an average of 50 euros per month for over three million low-income households, costing about 2 billion euros annually. He promised a reform of solidarity allocations in the coming weeks through a «unified social allocation» better protecting the most vulnerable.
On taxation, no «direct or indirect» increases on households are planned. The government drops the replacement of the 10% retiree deduction with a 2000-euro flat rate. Housing allowances (APL) and disability benefits are preserved, and the income tax scale will be adjusted for inflation. Efforts against fraud and tax over-optimization are announced.
For savings, ministerial spending in current euros will be lower than in 2025 for the first time, with a state reform for greater efficiency. Exceptions include the armed forces (military programming law before July 14), police, justice, national education (2000 additional posts), higher education, ecological transition, and overseas territories. University meals at one euro will be generalized from May, and 400 million euros more will go to social housing providers. Agricultural commitments will be honored.
Lecornu targets a 5% GDP deficit in 2026 for a «protection and investment» budget. The Socialist Party deems the advances «real» but «insufficient», with pending issues like the surtax on large companies (6.3 billion euros proposed versus 8 billion demanded) and the holdings tax. Marine Le Pen reaffirmed the RN's opposition. Debates are suspended until Tuesday, the deadline to decide between 49.3 and ordinances.
