French Government Reverses Budget Cuts for Social Economy Amid Ongoing Challenges for Mixed Economy Model

The French government has reversed a planned 30% budget cut impacting the social and solidarity economy (ESS), marking a significant victory for the sector’s stakeholders. On June 22, 2026, Serge Papin, Minister of SMEs, Trade, Crafts, Tourism, and Purchasing Power, announced the cancellation of a 4 billion euro reduction in annual credits previously proposed by the Ministry of Finance. This decision followed a mobilization of associative, cooperative, and mutualist actors who voiced strong concerns about the financial impact of the cuts.

Meanwhile, the local mixed economy model in France, celebrating its 100th anniversary this year, continues to prove its relevance but faces ongoing legal and trust challenges. Approximately 1,500 societies of mixed economy operate across sectors like housing, energy, and culture, generating an annual turnover of €20 billion. Philippe Laurent, president of the Federation of Local Public Enterprises (FedEPL), highlighted during the Local Mixed Economy Day on June 25 that while the model offers valuable flexibility and local strategic management, it requires greater legal clarity and stronger public administration support. Issues persist regarding conflicts of interest among elected officials involved with these enterprises and a need for increased loan guarantee ceilings.

A congress scheduled for October 2026 aims to engage presidential candidates on the future of the local mixed economy, reflecting its ongoing importance amid economic and regulatory challenges.

The combined developments underscore a renewed government commitment to financial support for the social economy, even as the mixed economy sector seeks enhanced legal frameworks and institutional trust to sustain and expand its role in the French economy.