2026 Budget: "The idea is not to increase taxes," says Eric Lombard

Eric Lombard was interviewed about an article in Le Monde, published on June 3, which states that "Bercy is preparing minds for a new tax increase in 2026."

"I don't accept this statement; it's not what we have in mind. We want fiscal stability, we want stability in compulsory levies. What we have in France is not a problem with compulsory levies or tax levels. It's not about increasing them; it's a problem with public spending," said Mr. Lombard.

"There will be no overall tax increase," the minister added.

Asked about a possible social VAT, he replied: "That's another issue. Parliament makes the law. So Parliament will be able to change the law later."

As for a possible tax on French savings, Eric Lombard declared: "That's not the idea at all. Once again, the idea is not to increase taxes. I want to maintain compulsory deductions."

Eric Lombard is speaking six weeks before the government's deadline to present its budgetary choices, in a context of fragile growth, a trade war and political unrest.

The French government plans to find €40 billion in savings to meet its 2026 public deficit reduction targets, through proposals that are expected to combine spending cuts and revenue increases, and also by merging and eliminating several state operators and agencies with the aim of making savings.

François Bayrou recently called for an "effort from all French people" to redress public finances by opening the door to a "social VAT" while remaining evasive about his budgetary choices to find 40 billion euros in savings.

This comes as the International Monetary Fund (IMF) has warned that "difficult decisions" are needed in France to restore public finances, warning against excessive tax increases at the expense of reducing public spending.

"A continued recovery in public finances on the scale of the effort planned in France's medium-term plan, which would involve taxation alone, would weigh on business confidence, household consumption and growth potential," warns the IMF, which forecasts growth of only 0,6% this year.