Overview
- Prime Minister Sébastien Lecornu proposed suspending Macron’s pension reform until 2028, keeping the effective retirement age at 62 years and 9 months, with an estimated cost of €400 million in 2026 rising to €1.8 billion in 2027.
- The budget plan for 2026 targets a deficit of about 4.7% of GDP, with room to stay just under 5%, and includes roughly €6.5 billion in new taxes on high earners and large companies.
- Measures under the government’s “justice” tax effort include a levy on financial wealth held in family holdings, an exceptional surtax on incomes above €250,000 to ensure a minimum 20% effective rate, and an extended contribution on firms with over €1 billion in revenue.
- Socialist leaders signaled they will not back immediate censure after the concessions, while the far right (RN) and the far left (LFI) are pressing motions that the Assembly is expected to consider this week.
- The newly formed cabinet features a strong managerial profile, with Laurent Nuñez at Interior, Jean‑Pierre Farandou at Labour, Catherine Vautrin at Defense, Roland Lescure at Economy, and several figures from civil society.