French Government Denies Plans to Tax Employee Savings in 2027 Budget Amid Legal Action Over Leaks

The French government has officially denied any intentions to tax employee savings as part of the 2027 budget preparations, despite internal discussions and significant media leaks alleging otherwise. The controversy escalated after unauthorized leaks of internal documents suggested the government was considering taxing employer contributions and profit-sharing above €3,000 annually to help fund social security and health insurance.

Prime Minister Sébastien Lecornu firmly dismissed the leaks, emphasizing that they were not official government positions or decisions. He stated, "No new taxation on employee savings will be included in the upcoming 2027 budget." Rather than imposing new taxes, the government plans to enhance employees’ access to their existing savings, notably through a proposed law allowing exceptional withdrawals of up to €5,000 from employee savings, which was approved by the Senate and is awaiting further parliamentary examination.

Economy Minister Roland Lescure acknowledged that taxing employee bonuses related to savings plans was under consideration but emphasized that no definite decision had been made. He condemned the leaks as "inadmissible and harmful to the national interest" and expressed gratitude to civil servants diligently working on the budget.

In response to the unauthorized dissemination of internal budget deliberations, Matignon (the Prime Minister's office) has taken legal steps, notifying the Paris public prosecutor under Article 40 of the criminal procedure code about potential abuse of trust or violation of professional secrecy. Officials warned that the leaks could disrupt economic activities by causing businesses and individuals to make financial decisions based on inaccurate or premature information.

Currently, employer contributions to salary savings plans are exempt from social contributions but subject to other taxes such as the general social contribution (CSG) and debt repayment contribution (CRDS) at a combined rate of 9.7%. The government is exploring options for social charges on contributions exceeding €3,000, though no final resolution is forthcoming.

This internal discord and public controversy highlight the delicate balance the French government is attempting to maintain between addressing budgetary challenges and preserving employee savings incentives amid rising public scrutiny and intra-governmental debate.