France allocates budget support following record wildfire season

The French government has unveiled its 2027 budget proposal, which includes specific measures to address the impact of the record-breaking 2026 wildfire season. The plan allocates 200 million euros to support firefighters, funded by an increase in the tax on insurance agreements (TSCA).

To assist businesses in affected regions such as Gironde, Landes, and Var, the government is introducing relief for small businesses, SMEs, and self-employed workers facing sharp declines in turnover. This support includes exemptions from social security contributions and reductions in property and waste collection taxes for establishments located in areas subject to evacuation or confinement orders.

According to France Assureurs, the summer fires resulted in nearly 500 million euros in insured damages across approximately 25,000 claims. Notably, over 1,800 business interruption claims have been filed, totaling roughly 30 million euros in lost revenue, many of which occurred without direct physical damage to property. Additionally, insurers covered relocation costs for approximately 30,000 individuals forced to leave their primary residences.