French Prime Minister Sébastien Lecornu has outlined the main directions of France's upcoming budget in interviews with daily newspaper Le Parisien and news broadcaster LCI.
Lecornu maintained that securing approval for the budget in the National Assembly remains his top priority, even as much of the French political landscape shifts focus toward the presidential election set for next April.
The prime minister indicated that retirees could be asked to contribute to fiscal savings, though he pledged to protect lower income pensioners by excluding small pensions from any de-indexing. Nevertheless, the proposal faces immediate opposition in parliament, where La France Insoumise and the Socialist Party are preparing to table a motion of censure against the administration.
The National Assembly is the lower house of the French Parliament, holding primary authority over state spending and tax legislation. La France Insoumise is a left wing political party and the Socialist Party is a centre left opposition group. A motion of censure, or vote of no confidence, requires a majority of lawmakers to pass and can force the resignation of the sitting government.
Income tax bracket freeze
LCI economy journalist Catherine André noted that while the government budget strategy is not entirely clear, several key directions have emerged. She highlighted plans for a blank year that would freeze income tax brackets, describing the measure as a hidden tax increase for households across France.
Freezing tax brackets prevents income thresholds from adjusting alongside inflation, effectively pushing more taxpayers into higher tax brackets over time. International institutions including the Organisation for Economic Co-operation and Development, the International Monetary Fund, and the Banque de France consider freezing brackets to be the least bad option available, estimating that it would generate several billion euros in immediate savings for the state budget.
Sick leave reform and legislative deadlock
Lecornu also targeted Social Security for spending cuts, calling for a comprehensive reform of sick leave regulations. The prime minister stated that fraudulent sick leave claims and abuses have exploded in recent years, making structural reform essential for the welfare system.
André emphasized that implementing a major structural reform requires the full backing of the National Assembly. She predicted that Lecornu will be unable to win parliamentary approval for the measure, warning that France is heading straight into a political deadlock over the upcoming budget.
