2026 French Budget Under Lecornu Signals Deepening Austerity and Growing Social Inequalities
Minister Lecornu's 2026 austerity budget prioritizes spending cuts over social welfare, deepening inequalities and sparking political criticism regarding neglect of vulnerable populations.
- • 2026 budget targets 4.7% public deficit, debt at 117.9% of GDP with increased fiscal effort.
- • Social benefits frozen, reducing real value amid 1.3% inflation, affecting poorest citizens.
- • Health budget minimally increased by 1.6%, criticized as inadequate.
- • Ongoing tax cuts on corporations, wealthiest taxed less than before.
- • Political discourse overlooks social issues; Socialists propose Zucman tax amendment.
Key details
The French government, led by Minister of Economy Sébastien Lecornu, unveiled the 2026 austerity budget focusing on significant public spending cuts rather than tax hikes, aiming to reduce the country's public deficit to 4.7% of GDP and debt to 117.9% of GDP. This budget includes a higher structural primary effort of 1.2 points of GDP, up from 0.9 in 2025, emphasizing fiscal restraint at the expense of social welfare and public services.
Among the most impactful measures is the freezing of social benefits, which—when adjusted for an anticipated 1.3% inflation—effectively reduce the real value of support for the poorest citizens. This freeze is projected to save the government 5.8 billion euros but exacerbates growing inequalities, as nearly ten million French people live below the poverty line. Health funding will see only a minimal 1.6% increase, barely ahead of inflation, eliciting criticism from healthcare organizations concerned about underfunding.
Tax policies continue to favor large corporations through ongoing reductions in the CVAE production tax, intensifying disparities between big businesses and small-to-medium enterprises. Despite claims of fairer fiscal distribution, the wealthiest contribute less than in prior years, with no introduction of new taxes.
Political discourse has notably sidelined the social dimensions of this budget. As reported, solidarity policies have receded from central republican priorities, and Minister Lecornu’s general policy address notably omitted the mounting social issues. This neglect comes amid a normalization of poverty-related hardships such as homelessness and inadequate heating, revealing a troubling political indifference toward vulnerable populations. Socialists, while opposing the government’s budget approach, are preparing a Zucman tax amendment aimed at taxing the wealthiest, signaling ongoing political tensions.
The budget's austerity measures represent a continued commitment to fiscal tightening despite social repercussions, raising concerns about worsening inequalities and the marginalization of the needy. As fiscal discipline takes precedence, calls for greater social responsibility and increased support for marginalized groups remain pressing.
"We will judge you by your actions," warned Patrick Kanner, president of the Socialist group in the Senate, underscoring the demand for governmental accountability amid growing social unease. The government's approach sets the stage for intensified debates over fiscal policy and social justice in the coming year.