France Begins Early Preparations for 2026 Budget with Focus on Tax Adjustments and Spending Cuts

Economy Minister Eric Lombard outlines plans to reduce taxes for high earners and industries while pursuing spending reductions to address public deficit concerns.

• Economy Minister Eric Lombard announced that preparations for the 2026 budget will begin immediately to allow more time for adjustments than the 2025 budget process allowed.
• Key priorities include reducing the 'flat tax' on capital gains and dividends for high earners from 37.2% to 30% and addressing the disproportionate impact of increased charges on industries.
• The controversial surtax on large corporations, introduced in the 2025 budget, will not be extended into 2026, though corporate tax levels will remain unchanged.
• The government aims to reduce the public deficit to 5.4% of GDP in 2025 and further to 4.6% in 2026, with spending cuts targeting healthcare, local government, and non-essential state programs.
• New monthly oversight mechanisms will be introduced to strictly monitor public spending and prevent budget overruns like those seen in 2024.

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