New start for the reform of the state as property owner

The creation of a real estate company to manage the state's property portfolio, censored at the end of 2024 by the Constitutional Council, is once again submitted to deputies. This project, led by MP Thomas Cazenave, aims to modernize the management of public assets and end free premises for administrations. Supported by the government and 140 deputies, it will be debated in the National Assembly starting next week.

The reform of the state's real estate policy is entering a new phase after several years of discussions. Envisaged for a long time, it was announced in 2023, suspended by the dissolution of the National Assembly, resumed at the end of 2024, and included in the 2025 budget before being censored by the Constitutional Council, which ruled it did not belong in a budget text.

Renaissance MP from Gironde, Thomas Cazenave, then drafted a specific bill, convincing his group to support it. Backed by the government, this initiative is cosigned by 140 deputies from the ruling coalition and the Socialist Party. The text is arriving at the National Assembly for debate in the finance committee on Wednesday, January 14, followed by discussion in the hemicycle on January 27.

"This is a reform that is good for the state, for the economy, and for the climate," argues Thomas Cazenave. "I hope it will be voted by the Assembly, and then quickly by the Senate." Carried by a handful of right-wing and centrist officials, this project aims to modernize the management of the state's vast and sometimes dilapidated real estate portfolio, ending free premises for administrations.

Despite the hurdles, this political endurance could lead to more efficient management of public assets.

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French National Assembly deputies from left, far-right, and centrist parties celebrate the adoption of a new unproductive wealth tax after rejecting the Zucman tax, in a vivid chamber scene.
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National assembly rejects Zucman tax and adopts new wealth tax

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The National Assembly rejected the Zucman tax on high patrimonies on Friday by 172 votes in favor and 228 against, at the heart of debates on the 2026 budget. Shortly after, deputies approved an amendment transforming the real estate wealth tax into an 'unproductive wealth tax,' carried by MoDem and sub-amended by socialists. This decision, supported by an unexpected alliance between PS, RN, and centrists, marks a symbolic victory for the left and far-right opposition.

Debates on the 2026 finance bill at the National Assembly drag on without addressing high patrimony taxation, as the pension reform suspension begins scrutiny in committee. Socialists, led by Olivier Faure, threaten a censure motion if no fiscal justice concessions are made. The right firmly opposes the pension suspension, vowing to restore it.

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Building on the joint committee's failure on December 19, Parliament is accelerating adoption of a special law early next week to secure temporary state financing from January 1, while Prime Minister Sébastien Lecornu launches consultations with party leaders starting Sunday. Impacts include the suspension of the MaPrimeRénov' program.

The French government, facing a parliamentary deadlock on the 2026 budget, must decide on Monday between article 49.3 and an unprecedented budgetary ordinance. It is renewing the surtax on large companies' profits at 8 billion euros, while renouncing a cut to the CVAE. This aims to secure an agreement with socialists to avoid censure.

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The French Senate adopted a revised version of the 2026 finance bill on Monday, December 15, by 187 votes to 109. This copy, favoring spending cuts over tax increases, will serve as the basis for discussions in the joint committee on Friday. Negotiations look challenging amid divergences between the two chambers.

Deputies adopted the 'revenues' part of the 2026 social security budget on Saturday, November 8, by 176 votes to 161 with 58 abstentions. This narrow vote allows debates to continue on the 'expenditures' part, which includes suspending the 2023 pension reform. Discussions will run until Wednesday, interrupted by the Armistice on November 11.

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Debates on the 2026 budget in the French National Assembly are bogging down, with unusual alliances between RN, PS, and MoDem leading to the adoption of tax increases totaling 34 billion euros in 24 hours. Prime Minister Sébastien Lecornu describes the situation as a 'very uncertain endurance race', while general rapporteur Philippe Juvin deems it highly likely that the text will not be examined on time. Industrialists denounce overtaxation threatening reindustrialization.

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