François Bayrou, a well -known political figure, has revealed his ambitious plan “Stop in debt” which aims to achieve significant budgetary savings. The stated objective is to reduce the budget of 43.8 billion euros from here 2026. This plan raises strong questions about what it will change for households, especially for retirees. While the French economy seeks to recover after several difficult financial years, these measures could well turn up the daily life of many citizens.
A daring plan to straighten finances
The “stop to debt” plan is based on several flagship measures intended to put order in public finances. Among these, we find the freezing of pensions, the freezing of the scales of the tax as well as of the general social contribution (CSG). We also see a reform of the tax reduction in 10% in a fixed annual package of 2000 euros. The purpose of these initiatives is to slow down public spending while boosting tax revenues.
These choices are not without consequences for a large part of the French. According to a note from the French Observatory for Economic Conditions (OFCE), 90% households of retirees will see their standard of living dry up, while only 5% could hope for a slight financial gain.
Notable changes for retirees
Retirees find themselves on the front line with these measures. Their disposable income should drop by about 4.9 billion euros in 2026, which corresponds to a decrease in 0,9% Compared to their current standard of living. This decrease results in particular from a decrease in pensions and other aids such as the solidarity allowance for the elderly (ASPA).
The overhaul of the tax allowance will, for its part, have variable consequences depending on the income. The most modest retirees will see their wallets decrease roughly 100 euroswhile for easier couples, the loss could reach 1000 euros. In addition, for couples with two retirees, the standard of living would be affected up to approximately 1%against -0,4% For households made up of a single retired.
Repercussions on a tax side …
On the tax component, approximately 1,5 million of households will benefit from a drop in tax thanks to the end of certain abatements, while for 5,2 millions of them, the tax will climb. The scale of the scale could generate an additional tax increase of 400 million euros For nearly 6.7 million households.
Some profiles will be more weakened than others. For example, couples, only one of the retirees belongs to the higher branch of income, will see their situation deteriorate further. Conversely, among households bringing together one or more retirees with annual income below 19 920 eurossome could put aside until 4 euros thanks to new measures.
In this scenario where each decision has its advantages and disadvantages, it remains necessary for everyone to measure the effect that these modifications could have on their own situation. While part of households will benefit from a total drop in tax estimated to 300 million eurosthe state nevertheless anticipates a net tax surplus of 800 million euros thanks to the increases applied elsewhere.
This plan, which aims above all to stabilize the national economy by a rigorous management of the public budget in the face of local and international financial challenges, invites everyone to think carefully about the way in which these new features will influence their daily lives.
