Intercommunalities Criticize Harsh 2026 Budget Cuts Impacting Local Governance

On January 27, 2026, elected officials from French intercommunal bodies voiced strong criticism over the government’s 2026 budget cuts, describing them as "extremely painful" with "heavy consequences" for local territories. The finance bill mandates significant savings, notably requiring intercommunalities—which represent 20% of local public spending—to shoulder more than half of the cutbacks, totaling 1.7 billion euros. These savings largely stem from reduced compensation linked to reforms in the professional tax and relief on local taxes for industrial properties.

Virginie Lutrot, first vice-president of the association of intercommunalities, expressed frustration, stating that these local governments are continually treated as the "butt of the joke." Sébastien Miossec, deputy president of Intercommunalités de France, warned that the reduction is "particularly painful" and will severely affect territorial governance and spending. Additionally, Gilles Carrez highlighted the impact of decreasing compensation for local taxes, implying that such fiscal austerity threatens the ability of local authorities to function effectively.

This criticism followed a meeting on January 5 between Françoise Gatel, Minister of Decentralization, and Laurent Nuñez, Minister of the Interior, reflecting ongoing government discussions on the finance bill’s implementation. The deep discontent underscores concerns about the fairness and consequences of budget measures imposed on local intercommunal institutions, which play a crucial role in managing public services and development for their constituencies.