Eric Lombard Reiterates No Tax Increases Amid Economic Reforms

In a recent appearance on the French television program "Questions politiques," Éric Lombard, the Minister of Economy, firmly stated that there will be no overall tax increases in 2026 as the government strives to reduce the public deficit by €40 billion. Lombard underscored this message in response to concerns following a *Le Monde* article suggesting that the Ministry of Finance was preparing tax hikes. He emphasized, "there will not be an overall tax increase," while clarifying that discussions about a potential social VAT and taxation of savings are distinct matters that would require parliamentary approval.

Lombard also addressed retirement reforms, expressing his opposition to the introduction of mandatory capitalization, which he described as potentially unequal and beneficial only to wealthier individuals. "Now is not the right time to introduce mandatory capitalization," he stated, citing more pressing issues within the pension system, such as demographic challenges imposed by an aging society. Former Prime Minister Édouard Philippe had previously suggested a 15% capitalization in retirement solutions, but Lombard reiterated the need to focus on immediate fiscal concerns and the continued sustainability of public finances.

Beyond taxation and retirement, Lombard stated that the government remains committed to controlling public spending to stabilize the economy. He indicated that this stability may include difficult choices, such as potential job cuts in the public sector, although no specific figures were provided.

This recent discourse from Lombard reflects the government's broader agenda of fiscal responsibility while navigating social needs in France. As 2026 approaches, the focus remains on balancing public spending cuts with economic growth efforts, ensuring that reforms do not disproportionately impact the less affluent.