Lecornu's Budget Balancing Act: Navigating France's Fiscal Future

Newly appointed French Prime Minister Sebastien Lecornu has ruled out reintroducing a wealth tax and suspending the current pension reform. Lecornu is working towards a 2026 budget deficit target of 4.7% of GDP, seeking a compromise in parliament amid political challenges and emphasizing fiscal fairness.

In his first major policy announcements, French Prime Minister Sebastien Lecornu has dismissed the reintroduction of a wealth tax and the suspension of the pension reform, setting a clear line for his government's economic strategy.

Lecornu, appointed by President Emmanuel Macron amid political turmoil, aims to draft a 2026 budget with a deficit of around 4.7% of GDP, closely aligning with his predecessor's target. He stresses the importance of fiscal fairness and calls for parliamentary consensus.

With Macron's alliance lacking a majority, securing bipartisan support for the budget becomes crucial, particularly as key Socialist demands clash with Lecornu's plans. The Prime Minister highlights the urgent need for agreement to prevent a potential spike in the budget deficit.

(With inputs from agencies.)