France's 'reversible budget' plan risks slowing corporate investment ahead of 2027 vote

The French executive is framing the 2026 budget as 'reversible' to preserve fiscal options for the next parliamentary majority after the 2027 election. With growth forecast at 0.5% in 2026, think tanks Rexecode and Institut de l'entreprise warn this uncertainty could dampen corporate investment decisions. The policy signals a deliberate deferral of fiscal consolidation, prioritizing political flexibility over near-term economic certainty.