Controversies and Initiatives Mark Examination of 2026 French Budget in Parliament
Parliament's 2026 budget examination includes fiscal reforms like birth leave indemnity and tax scale freeze amid Senate's inquiry into retail profit margins due to rising food prices.
- • Parliament to review 2026 budget fiscal section with new birth leave indemnity proposed.
- • Birth leave indemnity set at 70% of net salary for first month, complementing existing leaves.
- • Income tax scale freeze to modestly impact several hundred thousand households, less benefit for modest incomes.
- • Senate's Green group seeking inquiry into large retail chains' profit margins due to sustained food price inflation despite energy cost drops.
Key details
As the French Parliament prepares to scrutinize the 2026 budget's fiscal portion, debates are intensifying around proposed measures and calls for investigations into market practices impacting consumers. The budget introduces a new birth leave indemnity at 70% of net salary for the first month, complementing existing maternity and paternity leaves, signaling efforts to bolster family support. Additionally, a freeze on the income tax scale is expected to provide limited relief for several hundred thousand households, with impacts deemed modest for modest-income families compared to wealthier ones, according to Amélie de Montchalin.
Parallel to budget discussions, the Senate's Green group has pushed for a parliamentary inquiry into the profit margins of major retail chains, following prior concerns over natural mineral water quality. The inquiry aims to address persistent inflation in food prices exceeding 20%, despite recent falls in energy costs—a price trend that remains burdensome for consumers. Senator Antoinette Guhl emphasized the importance of this probe to ensure market fairness.
Together, these developments underline tensions around fiscal policy and economic fairness as France advances its 2026 budgetary plans, responding both to family welfare needs and consumer rights in a challenging inflationary context.