FACTBOX-What is in France's 2026 budget?

France closes the chapter on months of budget negotiations on Monday when no-confidence motions against the government are ‌expected to fail, allowing the 2026 fiscal plans to pass. The budget aims to cut the fiscal deficit to 5% of ⁠gross domestic product this year from an estimated 5.4% last year, after concessions to the Socialists forced the government to retreat from an original target of 4.7%.

MAIN TAX MEASURES Big companies: ​A surtax on firms with over 1 billion euros ($1.19 billion) in revenue will ‍be extended, generating 7.3 billion euros.

Wealth tax: A 20% levy on assets in holding companies not used for business purposes, such as racehorses, yachts or private jets. The government expects it to raise 100 ⁠million euros. High earners: ‌A temporary tax ⁠on top incomes will be extended, affecting 20,000 taxpayers and raising 650 million euros.

Income tax: Brackets will be ‍increased in line with inflation. The government's original draft budget would have frozen income tax brackets, ​which it hoped would bring in an extra 1.9 billion euros. Small parcels: A ⁠2-euro levy on small parcels, targeting Chinese imports, is expected to raise 400 million euros.

SPENDING The government said cuts ⁠will amount to 9 billion euros in 2026, affecting all but the interior, justice and defence ministries. That is nearly half of the 17 billion euros in savings ⁠it initially targeted.

Public spending is expected to ease slightly to 56.6% of economic output from ⁠56.8% last year ‌though it will remain among the highest in the world. The defence budget will receive an extra 6.5 billion euros as part of ⁠a multi-year military build-up. ($1 = 0.8435 euros)