Finance
Factbox-What is in France's draft 2026 budget?
Published by Global Banking and Finance Review
Posted on October 20, 2025
Global Banking and Finance Review
Company
Global Banking and Finance Review is an online platform offering news, analysis, and opinion on the latest trends, developments, and innovations in the banking and finance industry worldwide. The platform covers a diverse range of topics, including banking, insurance, investment, wealth management, fintech, and regulatory issues. The website publishes news, press releases, opinion and advertorials on various financial organizations, products and services which are commissioned from various Companies, Organizations, PR agencies, Bloggers etc. These commissioned articles are commercial in nature. This is not to be considered as financial advice and should be considered only for information purposes. It does not reflect the views or opinion of our website and is not to be considered an endorsement or a recommendation. We cannot guarantee the accuracy or applicability of any information provided with respect to your individual or personal circumstances. Please seek Professional advice from a qualified professional before making any financial decisions. We link to various third-party websites, affiliate sales networks, and to our advertising partners websites. When you view or click on certain links available on our articles, our partners may compensate us for displaying the content to you or make a purchase or fill a form. This will not incur any additional charges to you. To make things simpler for you to identity or distinguish advertised or sponsored articles or links, you may consider all articles or links hosted on our site as a commercial article placement. We will not be responsible for any loss you may suffer as a result of any omission or inaccuracy on the website.
Published by Global Banking and Finance Review
Posted on October 20, 2025
PARIS (Reuters) -French lawmakers on Monday begin reviewing Prime Minister Sebastien Lecornu's 2026 budget, which aims to tighten public finances by over 30 billion euros ($35 billion) - roughly 1% of GDP.
The budget squeeze would come through 17 billion euros in spending cuts and 14 billion euros in new taxes, although the draft bill is likely to be heavily amended in the divided parliament.
To secure cross-party support, the bill will include a suspension of President Macron's 2023 pension reform, costing 400 million euros in 2026 and 1.8 billion euros in 2027.
MAIN TAX MEASURES
Wealth Tax: A 2% levy on assets in holding companies not used for business purposes, expected to raise 1 billion euros.
Politicians on the left are demanding a broader 2% tax on all wealth over 100 million euros, which they say could generate 15-20 billion euros in revenue.
High Earners: A temporary tax on top incomes will be extended, affecting 20,000 taxpayers and raising 1.5 billion euros.
Big Companies: A surtax on firms with over 1 billion euros in revenue will be extended but halved, generating 4 billion euros (down from 8 billion euros expected this year).
REVENUE-GENERATING REFORMS
Social Benefits and Pensions: Frozen at 2025 levels; pensions to rise slower than inflation until 2030.
Income Tax Brackets: Not adjusted for inflation, bringing in 1.9 billion euros and pushing 200,000 new taxpayers into the system.
Tax Breaks: 23 exemptions targeted, including school fee deductions and a key deduction for pensioners, yielding a combined 5 billion euros.
Health Savings: Increase in state health insurance deductibles, generating 2.3 billion euros.
OTHER MEASURES
* 1 billion euro exceptional tax on health insurers.
* 2-euro levy on small parcels, targeting Chinese imports, expected to raise 500 million euros.
* Implementation of the 15% global minimum corporate tax to generate 500 million euros.
($1 = 0.8564 euros)
(Reporting by Leigh ThomasEditing by Frances Kerry)