French Government Fails to Agree on a 2026 Budget: News Digest

The French government has failed to agree on a budget for 2026 for the second year running, a cyber-attack has rendered La Poste’s online services unusable during their busiest period, and tax authorities reminded the public that they must declare gifts from 1 January 2026. Residency cardholders have also been reminded about new EES systems rules during the festive period, the final direct debit payment for taxe d’habitation is upcoming, and the government urges protesting farmers not to disrupt travel over the Christmas period. Here are the headlines from French newspapers this week.

French Government Fails to Agree on a Complete 2026 Budget 

Yesterday, a joint committee of lawmakers from both chambers failed to reach an agreement on a comprehensive 2026 budget bill. Now, the government is pushing for emergency legislation to be approved, so that the state can continue operating and avoid a shutdown similar to the one that recently occurred during the Trump administration. France used this emergency rollover legislation last year until a finalised budget for 2025 was passed in February, which cost the government €12bn.

The Social Security element of the budget, including new healthcare, benefit and pension laws, will come into force on 1 January, as it was approved by MPs last week. Proposed budget changes, such as additional taxes on small parcels and fast-food outlets, increased fees for residency card applications, driving license updates and changes to VAT for self-employed workers, will not be in force on 1 January 2026. Currently, the tax bands for 2025 income to be declared in 2026 are also unlikely to be increased in line with inflation.  

Cyberattack on French Postal Service Disrupts Christmas Rush

On Monday, France’s national postal service, La Poste, was hit by a cyberattack that flooded its servers with targeted traffic, rendering its online services inaccessible. Sending letters is still possible, but any parcel requiring tracking or access to computer systems is not. 

Customers of La Banque Postale cannot access their online banking, although card payments on in-store payment terminals are transfers via WERO are still available. The group has assured that this attack has had no impact on customer data. 

Tax Authorities Publish Reminder to Declare Gifts

From 1 January 2026, declarable gifts, such as money or assets, must be declared through a dedicated online portal, says the French tax authorities. In the reminder, they highlighted the difference between cadeaux (Christmas gifts, pocket money, or gifts for special occasions) and dons, which, if they exceed 2% of the donor’s assets, 2.5% of their net annual income, or are valuable assets, must be declared.

There is no legal threshold for amounts set for these dons, and those who are unsure if a gift must be declared are encouraged to contact a tax lawyer for more information. The limited exceptions to this rule apply to individuals without internet access, or in exceptional circumstances involving gifting to minors or gifts from deceased parents. 

To access these online declarations, you will need to log in to their personal space, Espace Finances Publiques (formerly Espace Particulier) on the tax site, click Déclarer, then select Déclarer un don ou une cession de droits sociaux.

Festive Travel Reminders for EES Digital Borders System

French residency cardholders planning to travel outside the EU over the festive season should be especially careful, as the EU’s new EES digital border system is being introduced gradually and having the correct paperwork is essential.

Children under the age of 18 do not typically have their own residency cards, but parents will likely be asked to provide their Document de circulation pour étranger mineur. If they cannot show this, their children could be treated as short-stay visitors, who must abide by the 90/180-day rule.

Britons travelling to the UK must take their British passport, even if they hold dual nationality, as proof of exemption from the UK’s ETA entry permission scheme. All other nationals living in France who do not have British or Irish nationality must apply for an ETA before travelling to the UK. 

A certain degree of tolerance is expected to continue until 25 February 2026, but it is strongly advised to bring all necessary documents when travelling outside the EU from now on. 

Read more about the EU’s EES Systems here.

Direct-debit Payment Withdrawal for Taxe d’Habitation

For those who opted for a one-off direct debit payment known as prélèvement á l’échéance for the taxe d’habitation, the payment will be taken on Monday, 29 December 2025.

Read our guide on paying Taxe d’Habitation and Taxe Foncière here. 

Government warns Farmers against Christmas Blockads over Cattle Cull

The French government held talks with farmers’ unions on Friday and urged them not to stage more blockades over the Christmas break, after days of protests over an order to cull cattle following an outbreak of lumpy skin disease. For more than a week, farmers in the southwest have been demonstrating, setting up roadblocks and spraying manure outside government buildings. The unions are now divided on what to do next in the standoff.