Senate Endorses €500 Bonus for Mayors in 2026 Budget Amid Rejections and Debate

As part of the 2026 state budget, the French Senate has approved a €500 bonus for mayors but rejected a proposed territorial investment fund, while easing financial pressures on local authorities.

    Key details

  • • Senate approved a €500 bonus for mayors to enhance their state-related roles.
  • • The proposed fund for investment in territories was rejected by senators.
  • • Financial burden on local authorities for deficit reduction was reduced from €4.6 billion to around €2 billion.
  • • The controversial ‘Dilico’ reserve fund mechanism was scaled back by approximately €1.1 billion.

The French Senate has approved a €500 bonus for mayors in the 2026 state budget, aiming to strengthen their role as representatives of the state. This measure, championed by Prime Minister Sébastien Lecornu during the recent Congress of Mayors, is intended to "secure the capacity" of mayors to perform specific state-related duties. Formally, the bonus translates into an annual payment of €554 from the communes to their mayors.

Despite the approval, the Senate’s reception was marked by skepticism and criticism. Several senators described the bonus as a symbolic gesture falling short of genuine recognition for the demanding responsibilities borne by local elected officials. Senator David Margueritte notably called the bonus a communication operation, suggesting it inadequately addresses the realities and burdens faced by mayors, which include accountability for national fiscal challenges.

Alongside this, the Senate rejected a government proposal to create a "fund for investment in territories" (FIT). The FIT was designed to consolidate three existing funding streams tied to rural development, local investment, and urban policy, but senators opposed the idea, reflecting a preference to maintain current funding frameworks.

Financial measures in the budget also reflected a moderated approach towards local authorities’ contribution to deficit reduction. Senators successfully pushed to decrease the target financial contribution from local governments from the government's original €4.6 billion proposal to around €2 billion. Furthermore, a controversial mechanism known as "Dilico," which requires local authorities to reserve a portion of their tax revenues to mitigate deficits, was scaled back by approximately €1.1 billion, halving the government's intended increase.

In summary, the Senate's handling of the 2026 budget signals an attempt to balance national financial discipline with support for local officials, albeit with reservations about the adequacy of the measures. The approval of the mayoral bonus is a symbolic gesture, while the rejection of the investment fund and the reduction in fiscal demands reflect the delicate negotiations over the future financial landscape for local authorities.

This article was synthesized and translated from native language sources to provide English-speaking readers with local perspectives.

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