Story perspectives

France's Budget Boosts Defense Amid Tax Hikes

2/2/2026

Summary

Story summary

France's 2026 budget is set to pass today, enabling increased military spending.
Prime Minister Sébastien Lecornu used special powers to bypass a parliamentary vote due to divisions.
The budget allocates €6.7 billion for defense, including equipment and a voluntary service program.
Businesses will face tax increases, including a levy on large profits.
President Emmanuel Macron shifts focus to foreign policy as his term ends.

History

Historical Context

In 1966, France, under President Charles de Gaulle, initiated a military modernization program, allocating about 3% of GDP to defense amid Cold War tensions. This historical commitment to military readiness resonates today as Prime Minister Sébastien Lecornu proposed a €6.7 billion military budget, reflecting ongoing prioritization of defense in France's foreign policy, particularly following the 2023 military planning bill that increased spending by 40%.

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Story summary

France's 2026 budget is set to pass today, enabling increased military spending.
Prime Minister Sébastien Lecornu used special powers to bypass a parliamentary vote due to divisions.
The budget allocates €6.7 billion for defense, including equipment and a voluntary service program.
Businesses will face tax increases, including a levy on large profits.
President Emmanuel Macron shifts focus to foreign policy as his term ends.

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