The path is clear, but the choices remain fluid. To reduce the public deficit to 4.6% of GDP by 2026, the government is preparing an unprecedented economic plan. On the BFMTV set, Minister of the Economy Éric Lombard announced a budgetary effort of 40 billion euros, which he deems necessary to regain a credible trajectory and reassure the markets.
An ambitious goal that pushes Bercy to explore several fiscal and structural levers. Among the measures being considered: extending certain exceptional taxes, revising provisions for retirees, as well as reducing the burden of public agencies. The public conference on Tuesday, April 15, should help outline the contours of this plan more precisely.
Maintaining tax pressure on high incomes
The message is clear: the highest incomes could continue to bear a targeted fiscal effort. Introduced by the previous government, the exceptional contribution on high incomes, initially presented as temporary, is now being considered as a lasting tool for tax justice.
Specifically, this tax applies to incomes exceeding 250,000 euros per year for a single person, and 500,000 euros for a couple. By maintaining it, the state hopes to collect around two billion euros from “a few tens of thousands of taxpayers.” According to the minister, this is a way to support solidarity from above, while avoiding burdening the taxation of the middle classes.
The fate of the exceptional tax on large corporations, which generated 8 billion euros in 2025, remains uncertain. Although Éric Lombard asserts that it will not be renewed, no firm decision has yet been made according to internal sources.
Pensions, public agencies, and local authorities: expenses in the crosshairs
Bercy is also considering a rationalization of the administrative apparatus. State agencies, often criticized for their bureaucratic piling, could be targeted for a reduction in their number, staff, and operating resources. A provision already voted on April 11 in the Assembly foresees the elimination of any new advisory body creation.
The tax treatment of retirees is also under consideration. The government no longer rules out eliminating the tax allowance they benefit from, nor de-linking pensions from inflation. These are potential options that had caused strong tensions during previous budget debates, but are returning to the equation under the pressure of increasing budget constraints.
Local authorities are not spared. Already asked to contribute up to 2.2 billion euros in 2025, they may be called upon again to contribute to the overall effort. The government, faced with a tight accounting equation, seems ready to reactivate this lever, even at the risk of causing tensions.
🚨 DEFICIT ALERT: The government announces a massive effort to come for the French!
— MoneyRadar (@MoneyRadar_FR) April 14, 2025
To keep the deficit in 2026 at 4.6%, it will be necessary to save between 40 and 50 billion euros.
François Bayrou is organizing, this Tuesday, a large conference on public finances.
The emphasis will be… pic.twitter.com/jqlvxqD02t
Focusing on growth despite headwinds
While structural savings are at the heart of the strategy, the government also hopes to benefit from a resurgence of growth. Éric Lombard remains cautious but expresses measured hope: “In 2026, we will have better visibility on the budget and the economic environment, particularly in the United States.”
The expected growth for 2025 has been lowered to 0.7%, primarily due to the protectionist measures taken by Donald Trump. For the minister, the budgetary alert that France finds itself in is primarily the result of debt accumulated over the years, and not due to the international situation.
The 2026 budget will therefore start to be discussed on April 15, during a conference organized by François Bayrou. This public meeting is meant to mark the beginning of a new, more transparent budget method, according to the minister’s words.
