Prime Minister Sébastien Lecornu Promises Decentralization Law to Clarify Housing Policy Before Christmas 2025

At the 107th Congress of Mayors held in Paris, French Prime Minister Sébastien Lecornu announced the government's plan to introduce a decentralization law before Christmas 2025. This legislation aims to clarify the competencies related to public policies on housing for the upcoming 2026-2032 municipal mandate. Lecornu highlighted widespread confusion due to the involvement of numerous stakeholders in housing policy implementation, stating, "There are too many cooks in the kitchen and no one knows who does what." The proposed law seeks to streamline responsibilities in areas such as urban planning and social housing, offering local authorities a clearer and more effective framework.

The announcement came amid criticism by André Laignel, mayor of Issoudun and first vice-president of the French Association of Mayors (AMF), who voiced concerns over severe financial constraints endured by local governments. Laignel criticized the state's fiscal policies, citing mechanisms like the Dilico, which would withdraw 2 billion euros from local revenues, and reductions totaling 1.3 billion euros from eliminated economic taxes. He argued that these combined losses, potentially reaching 8 billion euros, threaten municipal financial autonomy and could precipitate a broader recession in France. Laignel called for the repeal of these measures and emphasized the need for municipalities to regain financial independence to properly serve citizens.

In response, Prime Minister Lecornu acknowledged failures in prior local governance policies and stressed the importance of a responsible budgetary approach for local authorities. He reiterated the government's commitment to address these issues through the forthcoming decentralization legislation, with a focus on housing policy clarity.

This new law represents a significant political development as it coincides with the approaching municipal elections, signaling a government effort to strengthen local governance amid financial and policy challenges. The clarification of housing policy responsibilities is anticipated to bring greater efficiency and accountability to local authorities during the 2026-2032 term.