French Senate Rejects Corporate Surtax in 2026 Budget, Sparking Political Debate

On November 29, 2025, the French Senate voted against a proposed surtax on profits of large companies for the 2026 budget, with 202 votes against and 118 in favor. This surtax, targeting roughly 400 companies with annual revenues exceeding one billion euros, was expected to generate four billion euros in revenue, continuing from a previous measure that yielded eight billion euros in 2025 at a higher rate.

The government had advocated for this surtax as a means to fund the budget without taxing the middle class. Economy Minister Roland Lescure defended the measure, emphasizing its preference over imposing new taxes on households. However, the Senate's center-right majority, including Republicans' budget rapporteur Jean-François Husson, opposed the tax, criticizing the government's approach of taxing companies instead of reducing public spending. Husson also noted the government's prior commitment that this surtax would only apply in 2025.

The Senate's rejection highlights a significant divergence with the National Assembly, which had initially approved and even increased the surtax rate through a government amendment aimed at raising six billion euros. Nevertheless, the Assembly later rejected the entire finance bill, negating that amendment before it reached the Senate.

The left expressed disappointment, with Senator Grégory Blanc from Place publique lamenting the lack of compromise and risks of instability, while Socialist Party Senator Thierry Cozic rebuked the right for pandering to its base. The Senate did pass a separate measure taxing companies buying back their own shares, though Public Accounts Minister Amélie de Montchalin deemed it ineffective.

With the surtax's rejection, the Senate majority pledged to offset lost revenue by cutting expenditure, marking ongoing tensions over fiscal policy direction between France's legislative chambers.