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French Socialists press Macron's new government for major budget concessions
Published by Global Banking and Finance Review
Posted on September 17, 2025
3 min readLast updated: January 21, 2026
Global Banking and Finance Review
Company
Published by Global Banking and Finance Review
Posted on September 17, 2025
3 min readLast updated: January 21, 2026
French Socialists press Macron's government for budget changes, including pension reform and wealth tax, amid public support and political tension.
By Benoit Van Overstraeten and Mathias de Rozario
PARIS (Reuters) -Leaders of France's Socialist Party met with new Prime Minister Sebastien Lecornu on Wednesday, seeking to get big concessions on the budget in talks that could shape the final stretch of President Emmanuel Macron's second term.
The Socialists have spent years on the political sidelines since Macron was elected president in 2017, but now hold leverage as Lecornu meets with party leaders across the political spectrum to try to get support from a fragmented parliament.
Socialist Party leader Olivier Faure said on X that he was meeting Lecornu to make demands that include "an end to harsh budget cuts, fair contributions from the wealthiest, increased purchasing power".
SOCIALISTS WANT TO SCRAP PENSION CHANGES
The Socialists want Lecornu to clearly commit to adopting key elements of their proposals for the 2026 budget, Socialist lawmaker Philippe Brun said. Lecornu's predecessor, Francois Bayrou, was ousted over his own plan for a 44 billion euro budget squeeze.
The Socialists' demands include scrapping Macron's unpopular changes to pensions, introducing a new wealth tax and halving the savings proposed by Bayrou for 2026.
"We won't negotiate until very clear concessions are announced," Brun told France Info broadcaster. "It’s up to the prime minister to tell us what he wants to take from our proposals before negotiations begin."
An IFOP opinion poll published on Tuesday showed broad public support for the Socialists' proposals, with 86% backing a new wealth tax and 66% supporting a suspension of the pension reform.
But the Socialists face a tough delicate balancing act. If they push too hard, the political crisis could worsen and Macron could be left with no other choice but to call snap parliamentary elections – a scenario that opinion polls suggest would not favour the left.
Brun said the Socialists were open to compromises, since they, like others, don't have a majority in parliament. He added that he reckoned startups like French artificial intelligence company Mistral AI should be exempted from the proposed wealth tax, to help them grow.
Lecornu has signalled openness to dialogue but faces major constraints, including preserving Macron's legacy and keeping the conservative The Republicains (LR) on board.
And he must tackle the fact that France is under pressure to lower a budget deficit that stands at nearly double the European Union's 3% ceiling, and a debt pile equivalent to 114% of GDP.
Lecornu, named prime minister last week, is close Macron ally and one-time conservative protege who rallied behind his 2017 presidential run.
He is Macron's fifth prime minister in less than two years after parliament, deeply split between three opposing ideological camps, ousted Bayrou over his budget plans.
Meanwhile, social tensions are brewing. Unions and left-wing groups plan nationwide protests on Thursday, demanding action on the country's budget, but also wages, pensions, and public services.
Some 80,000 police will be mobilised on Thursday, Interior Minister Bruno Retailleau told BFMTV. He said he expects attempts to block strategic sites and warned that thousands of violent individuals could take part in the protests.
(Additional reporting by Dominique Vidalon, Elizabeth Pineau; Writing by Ingrid MelanderEditing by Frances Kerry)
The Socialists are demanding an end to harsh budget cuts, fair contributions from the wealthiest, and the scrapping of unpopular pension changes.
An IFOP opinion poll showed that 86% of the public supports a new wealth tax, and 66% back a suspension of the pension reform.
Lecornu must balance preserving Macron's legacy while addressing the budget deficit and managing relations with the conservative The Republicains party.
They are planning nationwide protests demanding action on the budget, wages, pensions, and public services.
Interior Minister Bruno Retailleau announced that 80,000 police will be mobilized to manage the protests.
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