France's New Government: Fiscal Priorities, Pension Reform, and Tax Policy

New Government's Fiscal Stance

• 🇫🇷 France's new Prime Minister, Sebastien Lecornu, has outlined key policy directions for the upcoming 2026 budget.
• 💰 He has explicitly ruled out re-introducing a wealth tax and the proposed 2% levy on high-net individuals, known as the Zukman tax.

Pension Reform and Political Opposition

• ⚖️ The controversial pension reform will not be suspended, as Lecornu believes it would not resolve underlying issues.
• ✊ The socialist party has accused the government of refusing compromise and plans to support a motion of censure, called for by the left-wing unbowed France party.
• 🤝 The national rally party is in a decisive position, with Lecornu signaling openness to discussing changes to the social assistance scheme for undocumented migrants.

Budgetary Plans and Public Finances

• 📈 The 2026 budget aims to allocate an additional 6 billion euros for pensions and 5 billion euros for healthcare.
• 📉 State spending is projected to decrease by 6 billion euros, with a focus on tighter control of social spending and local government budgets.
• 🔍 A major bill to combat social and tax fraud is also planned.
• ⚠️ France's public debt has risen to 115.6% of GDP, and the government is targeting a deficit of 4.7% for the next year.