🏛️ France races against time on 2026 budget amid VAT shortfall

Oneliner

France is facing a €5 billion VAT revenue shortfall for 2025, prompting urgent discussions in the National Assembly over the 2026 budget. Health Minister Stéphanie Rist has linked potential changes to medical deductibles to the need for reducing the Social Security deficit below €20 billion. With a constitutional deadline looming, the Assembly is under pressure to finalize the budget, amid accusations from opposition parties of government stalling tactics. The outcome will significantly impact public spending and social services.

Key points

• France faces a significant VAT revenue shortfall, estimated at €5 billion for 2025.
• Health Minister links potential abandonment of medical deductible increases to Social Security deficit reduction.
• The National Assembly is under pressure to finalize the 2026 budget by the constitutional deadline.
• Political tensions rise as opposition parties accuse the government of stalling budget discussions.

Links

• BFMTV: La ministre de la Santé serait prête à abandonner le doublement des franchises médicales mais seulement si les parlementaires réduisent assez le trou de la Sécu
• Franceinfo: Budget de la France : sueurs froides pour le gouvernement, la TVA va rapporter moins que prévu
• Franceinfo: DIRECT. Budget 2026 : les députés, après un week-end de pause, reprennent les débats sur le projet de loi de finances à l'Assemblée nationale.
• BFMTV: Les recettes de la TVA sont en chute de 5 milliards d'euros: l'Assemblée nationale rouvre les finances de l'État en 2025
• RFI: France: l'Assemblée entame une course contre-la-montre dans l'examen du projet de loi de budget

Facts

• Projected VAT revenue shortfall for 2025 is €5 billion.
• Social Security deficit is expected to exceed €24 billion.
• The National Assembly has around 1,500 amendments to review before the budget deadline.
• The constitutional deadline for budget approval is midnight on Sunday.

Quotes

• The situation was worrying — Amélie de Montchalin
• We must be below €20 billion; we need to return to a trajectory that will ensure the sustainability of our social protection — Stéphanie Rist

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