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

Financial Times • January 19, 2026 • world

Key Points:

French Prime Minister Sébastien Lecornu has conceded to Socialist Party demands, including raising taxes on France’s largest companies, as he moves toward finalizing the 2026 budget amid a fragile minority government.
Lecornu announced he would invoke special constitutional powers (article 49.3) to bypass parliamentary approval of the budget, risking a no-confidence vote from far-right and far-left opposition parties that could topple his government.
The Socialists, holding 66 out of 577 seats, appear receptive to Lecornu’s concessions, which include expanded subsidized meals for students and increased benefits for low-income workers, potentially securing their abstention in the upcoming no-confidence vote.
Lecornu abandoned previous proposals to cut government spending and remove tax