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French PM to extend tax on big companies to appease the left

Sébastien Lecornu wants to finalise 2026 budget and keep his fragile government in power

French Prime Minister Sébastien Lecornu has yielded to a new raft of demands from the Socialist Party, including a tax increase for the country’s largest companies, as he inches closer to finalising a 2026 budget.

At the helm of a fragile minority government, Lecornu also announced on Monday that he would use special constitutional powers to seek to bypass lawmakers to enact a budget. Forging a compromise with the opposition had proven impossible, he said.

Using the 49.3 clause special powers carries risks, since far-right and far-left opposition parties have promised to hit back with a no-confidence vote in the National Assembly. If that succeeds, Lecornu’s government falls and the budget is scrapped; if it fails, then the government survives and the budget passes.

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