Budget discussions continue in the National Assembly

The National Assembly is still debating the 2027 budget, with parliamentarians removing a surtax on large companies despite the government's stance and amid weak economic growth. The surtax, which would have targeted around 400 large companies with a reduced rate, was temporarily removed in a close vote. The measure was opposed by deputies from various political groups, including the government's own camp.

Left pushes for multinational tax

Despite the removal of the surtax, the left succeeded in adopting the Zucman tax on the profits of multinational corporations. This tax aims to prevent companies from transferring profits abroad and is seen as a countermeasure to potential tax avoidance.

Disjointed budget debates

The budget discussions are described as disjointed, reflecting the lack of clear direction among parliamentarians. These debates are overshadowed by social movements and the upcoming presidential election. Many expect the budget text to be rejected, which would send the initial version to the Senate for further review.

Expected government rewrite

Parliamentarians anticipate that the government may rewrite the final version of the budget using a 49.3 vote, or that the government's version could go through an unprecedented budgetary ordinance. Deputies have also adopted certain measures, such as a strengthened tax on holding companies and an extension of tax credits for innovation to mid-sized companies.

Economic growth falls again

The day began with bad economic news, as growth fell by 0.1% in the third quarter. The Minister of Economy, Roland Lescure, stated that "The French economy is at a standstill." The Minister for Public Accounts, David Amiel, warned that more "efforts" would be needed than those planned in the initial budget text.

Calls for investment in green and tech sectors

Eric Coquerel, president of the Finance Committee for LFI, emphasized the need to reduce deficits but also stressed the importance of investing in the ecological transition and new technologies. The socialists secured a tax on data flows emitted by internet content providers, targeting "digital giants" with a 0.055 euro per gigabyte charge.

Government faces mixed outcomes

The government received rare satisfaction with the adoption of its Papin pact to facilitate the takeover of SMEs by their employees. A measure increasing tax exemptions for donations aimed at rebuilding the town hall of Limoges was also passed. Meanwhile, the group led by Marine Le Pen proposed a zero-interest loan for young couples trying to become homeowners, with a direct subsidy for a third child.

Low mobilization in the Assembly

Mobilization among deputies was low, with nearly 500 members absent. The debates will resume on Monday at 09:00.