French Government Plans Minor Reshuffle Ahead of Major Energy Policy Decree

French Prime Minister Sébastien Lecornu announced a limited government reshuffle, described as an "adjustment," expected to occur before the parliamentary reserve period ends on February 22, 2026. Lecornu emphasized that this reshuffle aims to maintain governmental continuity in response to public demand for stability.

In parallel, Lecornu revealed that the long-delayed Programming of Energy (PPE) decree will be signed next week. This critical energy policy includes launching six new EPR nuclear reactors, with an option for an additional eight, and strengthening renewable energy sources without imposing a moratorium. The policy signals a strategic push to increase France's electricity consumption through electrification to 60% by 2030, while ensuring electricity prices remain stable, bucking trends of rising costs in other European countries.

On fiscal matters, Lecornu justified using the controversial article 49-3 to pass the budget without additional tax increases, targeting a 5% deficit. Notably, the corporate tax rate for large companies will not change, although approximately one hundred medium-sized enterprises will benefit from tax elimination. Additionally, defense spending is set to rise, with the budget reaching 57 billion euros and an emphasis on sustaining this funding level over the long term.

Lecornu’s remarks underscore a government focused on energy security through nuclear and renewables, fiscal stability without tax hikes, and defense preparedness through increased budget allocation.