The tax elements of French PM Lecornu's draft finance bill reportedly include 30 articles, some have already been announced, but also the addition of a tax on "assets not allocated to an operational activity of property holding companies", via Playbook

• The tax is designed to target the richest members of society, writes Playbook.

Socialist Party (PS)

• Playbook, citing a source, reports that there is no question for the PS of "doing another round of negotiations on Wednesday, Thursday or Friday".


• Source adds that around one-third of elected PS officials are tempted to move towards censure.


• Around one third would prefer not to bring down the Lecornu gov't, on the condition of significant concessions.


• The remaining third are undecided.


• PS President Vallaud will speak this afternoon after Lecornu, but is not expected to announce the PS position at that point.

Analysis details (06:21)

Today's indicative schedule (BST), via Playbook

• 09:00: President Macron to chair the Lecornu government's Council of Ministers


• 09:30: Finance Committee hearing on the draft budgets for 2026 (finance and social security bills)


• 11:00: Lecornu meeting his gov't


• 14:00: Lecornu to deliver the General Policy Statement (should take less than 90-minutes; party leaders can respond to it thereafter)

Overnight

• French PM Lecornu's government is to present a budget aiming to cut costs by EUR 31bln, while it would cut EUR 17bln in spending, and aims to reduce the deficit to 4.7% by end-2026, according to La Tribune.

Background/Analysis

• Re-appointed PM Lecornu and President Macron announced the 2nd Lecornu cabinet over the weekend. A cabinet that drew criticism from the Left and Right, with LFI (and most of the Left, ex-PS) and RN moving to censure the government.


• On PS, the party expressed some concern at the cabinet appointments but did not immediately oppose the government. Instead, their support remains conditional on the dropping of Article 49.3 (Lecornu has previously indicated he would accept this) and rowing back on planned pension reform.


• The next points to watch are: Lecornu’s pension stance, how PS’ Faure responds to it and the general reception to the 2026 draft plan. The above points should determine the near-term trajectory of the latest government and by extension the likelihood of fiscal reform actually taking place vs fresh legislative elections being called.


• 
  In short, PS supporting or censuring the Lecornu government will determine how long it survives and whether Macron has to attempt to appoint another PM or accept fresh legislative elections.

14 Oct 2025 - 06:11- Important- Source: Playbook