France: Prime Minister denies plans to tax employee savings

French Prime Minister Sébastien Lecornu has denied plans to increase taxes on employee savings as part of the 2027 budget preparations. Following reports that the government might subject profit-sharing and participation schemes to social security contributions to reduce the deficit, Lecornu stated on social media that there has ‘never been any question’ of touching these funds. Instead, he indicated a desire to allow employees more freedom to access their saved money.

The clarification follows conflicting statements from within the executive, including comments from Economy and Finance Minister Roland Lescure, who previously noted that such levies were among the options being examined.

Separately, regarding the broader 2027 budget and the national deficit, former European Commissioner Thierry Breton has voiced opposition to increasing taxes. Breton argued that France already has the highest rate of compulsory levies among OECD countries and suggested that other solutions must be found to address the public deficit without further taxing citizens, countering proposals from political groups like La France Insoumise that advocate for more progressive income tax reforms.