French National Assembly's Finance Committee Rejects 2026 Budget Revenue Plan Amid Political Turmoil

On the night of October 22 to 23, 2025, the French National Assembly's finance committee overwhelmingly rejected the revenue section of the 2026 state budget, with a vote tally of 37 against and just 11 in favor. This major setback signals deep divisions within the Assembly and threatens a political impasse ahead of the budget's final vote scheduled for November 4.

The rejection united opposition from the left, the far-right Rassemblement national, and several members of Les Républicains (LR), including prominent government ministers. Only the Renaissance party fully supported the government's proposal.

Philippe Brun, leader of the Socialist Party (PS), highlighted the budget's flaws by stating, "the account is not balanced tonight," indicating the PS's reluctance to back the current plan without substantial revisions. The government, headed by Sébastien Lecornu, thus relies heavily on Socialist Party cooperation to avoid a censure motion.

Eric Coquerel, president of the finance commission from La France insoumise (LFI), sharply criticized the draft, dubbing it a "Frankenstein budget" and predicting its defeat in the Assembly. Notably, the left-wing deputies' attempts to pass the Zucman tax, intending to levy a minimum tax on those with assets exceeding 100 million euros, and to reinstate the wealth tax, were unsuccessful.

Further government proposals suffered as well; tax relief measures targeting retirees, estimated to cost 1.2 billion euros, were blocked, along with modest adjustments to the freeze on income tax. However, the committee approved certain revenue-generating amendments such as a tonnage surtax impacting the shipping company CMA-CGM, a tax on super-dividends, higher VAT on luxury goods, and incentives for greener maritime fuels. Controversy also arose over an amendment reducing tax exemptions for social landlords, creating tensions.

Philippe Juvin, Les Républicains general rapporteur for the budget, described the plan as lacking credibility and abstained from the vote. This internal division underscores the challenges the government faces in securing support for the budget.

Upcoming debates in the National Assembly, starting October 24, will revisit the original government proposal. Given the committee’s rejection and political opposition, the final passage of the 2026 budget appears precarious, with potential consequences for France’s fiscal policy and governance stability heading into the new year.