Prime Minister Sébastien Lecornu Unveils 2026 Budget Amid Pension Reform Suspension and Political Turmoil

On October 14, 2025, French Prime Minister Sébastien Lecornu presented the 2026 draft budget to the Council of Ministers and prepared to address the National Assembly with a detailed policy roadmap. The budget proposal aims to keep the public deficit at 4.7% of GDP but may be adjusted closer to 5% due to the financial impact of suspending the controversial 2023 pension reform, which is estimated to cost several hundred million euros in the first year. This suspension has been strongly advocated by influential political figures, including former Economy Minister Eric Lombard, who suggested a full suspension until the 2027 elections to ease political tensions and safeguard economic stability.

Lecornu's draft budget includes 29 fiscal measures, encompassing new taxes, increased levies, and some tax reliefs. Among these, a new tax on non-operational assets held by wealthy holdings is designed to target 20,000 to 30,000 structures sheltering wealth from taxation. However, Public Accounts Minister Amélie de Montchalin noted that professional assets are exempt, which will reduce the tax's potential revenue by about 90%, yielding an expected 1 to 1.5 billion euros.

The political environment remains highly charged, with the Prime Minister facing motions of censure from both La France Insoumise and Rassemblement national. The Socialist Party’s leader, Olivier Faure, has demanded an immediate and comprehensive suspension of the pension reform alongside calls for increased contributions from the wealthiest, warning that the support of socialists could be pivotal in any government censure. Former President François Hollande also urged abandoning Article 49.3 of the Constitution, which allows passing legislation without a parliamentary vote.

Lecornu described his upcoming National Assembly speech as a "moment of truth," having been granted freedom by the Élysée to create his political roadmap amid threats to his government's survival. His address aims to clarify his stance on critical issues including pensions, immigration, and taxation, as he seeks to maintain governmental stability and secure approval for his budget by the end of the year.