Budget examination continues without compromise

Deputies are set to continue examining the State's 2027 budget proposal on Monday, November 2, without prospects for compromise, as the government lacks a majority in the National Assembly. The examination of the financial law (PLF) resumed last Tuesday after a pause due to the review of the social security financing bill (PLFSS).

Deputies reject government positions on taxes

Deputies had previously rejected the extension of an exceptional surtax on the profits of large companies and approved a measure to counter aggressive tax optimization by multinationals, both against the government's position. These votes highlight the challenges faced by the government in the last budget of the Macron era.

Pension tax exemption remains unchanged

Deputies had also rejected reducing the ceiling of the 10% tax exemption on pensions on October 15. However, these votes are not definitive, as the final version of the text remains unknown.

Debates on budget revenues may extend

The National Assembly's agenda currently includes a solemn vote on the "revenues" section of the financial law after the session of questions to the government. However, with 1,450 amendments still to be examined, it is unlikely that all will be processed by the end of the day. As a result, debates on the "revenues" section may continue into the coming days, with the vote taking place after all amendments are examined.

Uncertain fate of the 2027 budget

It is likely that the "revenues" section of the 2027 PLF will be rejected, similar to the PLFSS. In this case, the State budget will be sent to the Senate without the "expenditures" section being examined by the National Assembly. The original version, that of the government, will then be examined by the senators.

Tight deadlines and possible constitutional moves

Deputies have until midnight on November 17 to examine and express an opinion on the financial law in first reading, after which the budget proposal must be transmitted to the Senate. Possible outcomes include the use of the 49.3, a constitutional provision allowing the government to proceed with a law without a majority vote in the National Assembly, which could expose the government to the risk of a vote of censure.