The 2026 budget law was enacted on February 19th. It notably includes a 1,18% increase in the minimum wage (SMIC), bringing the net monthly salary to €1,443.11, and introduces additional parental leave starting January 1st. It also extends the flat-rate deduction of employer social security contributions on overtime to companies with more than 250 employees.
A deficit that exceeds expectations
Despite these measures, the public deficit will reach 5% of GDP in 2026, or €153 billion, exceeding the initially projected 4,7%. The new Minister for Public Accounts, David Amiel, announced his intention to maintain this trajectory with "the utmost rigor." Meanwhile, a group of 2,000 business leaders reiterated their criticisms in early February, denouncing the continued existence of the CVAE (Corporate Value Added Tax) and a tax burden deemed incompatible with an ambitious industrial policy. French growth is expected to reach around 0,9% this year, according to projections from the Bank of France.
