Reshaping Power and Budget Autonomy in France's Ministry of Economy

The French Ministry of Economy has undergone significant internal restructuring under Sébastien Lecornu's recent government formation, dispersing traditional vertical power dynamics. Previously centralized with a chief minister overseeing delegated ministers from the sixth floor at Bercy, the ministry now operates with greater autonomy across key portfolios. Notably, Amélie de Montchalin has gained increased control over public accounts, while Serge Papin exercises more independence concerning business and commerce activities. This rebalancing reflects a move towards a less hierarchical, more fragmented governance structure within the ministry's several floors and ministerial teams.

Meanwhile, budget negotiations remain unsettled for the 2026 fiscal year. Budget rapporteur Philippe Juvin expressed cautious optimism that France will have a budget by January but acknowledged persistent challenges in meeting deficit reduction targets. Currently at 5.3% of GDP, the public deficit needs to be cut by 9 billion euros primarily through spending cuts rather than tax hikes, which Juvin criticized. A special budget law may be proposed due to the current deadlock in the finance bill agreement. Juvin challenged Amélie de Montchalin’s earlier estimate of the special law’s cost at 12 billion euros, calling that figure unrealistically high given the improved political stability and expected timely budget approval.

These developments underscore evolving power relations in France's economic governance as well as ongoing fiscal pressures. While ministerial autonomy is expanding, significant hurdles remain in reaching budget consensus for 2026. The ministry’s complex, labyrinthine organization now reflects a more diffused leadership landscape as it navigates France’s pressing economic challenges.