2026 Budget: Éric Lombard Rules Out Tax Hikes, Announces €40 Billion in Spending Cuts, Counting on Growth and Solidarity

Speaking on BFM Politique this Sunday, April 13, Economy and Finance Minister Éric Lombard outlined the main directions of the 2026 budget proposal. The government’s goal remains unchanged: reduce the public deficit to 4.6% of GDP in 2026 and bring it below 3% by 2029. To achieve this, the government plans a substantial €40 billion in savings, while ruling out any tax increases for middle-class households and businesses.

“Raising taxes is out of the question. We’ll make the necessary adjustments, but we will spend less and spend better,” stated Éric Lombard.

In a slowing economic context—with growth revised down to 0.7% for 2025 due to international trade tensions—the government is banking on a recovery to support public finances. The strategy also includes a shift in spending priorities, moving away from the “whatever it takes” approach toward a firm fiscal objective: reducing debt “no matter what,” as emphasized by Public Accounts Minister Amélie de Montchalin.

No Tax Hikes, But a Permanent Contribution from the Wealthiest

Among the few concrete announcements, Éric Lombard confirmed the continuation—and even the long-term establishment—of the exceptional contribution on high incomes and large fortunes. Originally introduced as a temporary measure, this levy will affect “a few tens of thousands of taxpayers” and is expected to generate around €2 billion in revenue.

“This is a matter of fairness. We’re asking everyone to contribute, and this show of solidarity is essential,” said the minister.

Upcoming Talks to Define the Scope of Budget Cuts

So far, the specific areas for spending cuts have not been detailed. Lombard noted that decisions will be made after a round of consultations starting Tuesday, April 15, led by Prime Minister François Bayrou. This conference on public finances will bring together members of parliament, representatives of local authorities, social security bodies, and trade unions.

“It’s too early to go into specifics,” acknowledged Éric Lombard, while assuring that the spending reductions will be targeted and responsible.