Sébastien Lecornu proposes ministerial pay cuts and business succession support

French Prime Minister Sébastien Lecornu has outlined several fiscal and austerity measures aimed at addressing economic challenges and public spending. As part of an effort to demonstrate leadership during a period of financial constraint, Lecornu is considering a symbolic reduction of 10% to 20% in the salaries of ministers and their advisors. Even with such a reduction, ministerial compensation is expected to remain significantly above the national average.

In addition to government austerity, Lecornu has addressed the critical issue of business succession. With approximately 370,000 companies at risk of disappearing by 2030 and 500,000 leaders approaching retirement, the Prime Minister has committed to supporting the transfer of ownership. He confirmed that the ‘pacte Dutreil’ will be preserved, a mechanism that allows for a 75% exemption on the value of transferred shares to reduce the costs of business succession. This support is particularly vital for very small enterprises (TPE), which represent 86% of businesses currently undergoing transmission and are facing difficulties such as rising energy costs and credit access.