The French Constitutional Council largely upheld the 2026 budget law on Thursday, February 19th, clearing the way for President Emmanuel Macron to enact the legislation after a protracted and contentious parliamentary process. While the Council struck down eight minor provisions, it validated the core of the budget, including a newly implemented tax on holding companies that had drawn scrutiny from lawmakers.
In an unprecedented move, Prime Minister Sébastien Lecornu had directly appealed to the Constitutional Council regarding the budget bill, questioning the legal soundness of key tax measures targeting wealthy individuals. These included the tax on holding companies, revisions to the Dutreil tax shelter, and restrictions on capital gains tax exemptions related to business transfers. The Prime Minister’s direct appeal signaled the political sensitivity surrounding the measures and the government’s desire for legal certainty.
The Council, presided over by Richard Ferrand, a former Macron administration figure, did not invalidate the tax on holding companies, a key component of the government’s effort to increase revenue. The decision comes after months of debate and amendments within the National Assembly and Senate. The budget’s passage was secured only after narrowly surviving motions of censure.
François Moreau, the 33-year-old chief of the parliamentary affairs unit in Lecornu’s cabinet, played a central role in navigating the legislative process. Originally from Amailloux in the Deux-Sèvres department, Moreau previously worked alongside Lecornu at the Ministry of the Armed Forces, advising on the 2024-2030 military programming law. He is responsible for mediating disagreements between ministers and shaping the government’s position on legislative texts and amendments. Moreau’s background includes a stage at the European Parliament with Elisabeth Morin-Chartier and work with former minister Franck Riester.
The Constitutional Council did issue reservations regarding the interpretation of two articles within the budget, potentially limiting their scope. However, the overall validation allows the government to proceed with its fiscal plans.
On February 17th, Prime Minister Lecornu addressed the National Assembly, responding to questions regarding the death of Quentin Deranque, a young activist, and calling on La France Insoumise (LFI) to address what he characterized as problematic elements within the party. The exchange highlighted the ongoing political tensions within the French legislature, even as the budget debate concluded.
