France's 2027 budget asks local authorities for about 5.5 billion euros, including a new wealth-scaled levy

France's 2027 budget bill, presented on 1 October 2026, asks local authorities to contribute about 5.5 billion euros, according to the government. A new 2.5 billion euro levy, the CPEB, falls on about 14,000 communes, all intercommunal bodies in mainland France and 60 percent of departments, at rates scaled by wealth. The FCTVA, which refunds VAT on local investment, would be cut by a quarter, about 2.1 billion euros, though green investment and roads would keep the full rate. The local finance committee puts the total effort at 7 billion euros or more. The bill now goes to Parliament.

Two design choices stand out for any government asking local authorities to share deficit reduction: a levy weighted toward richer areas, and a two-tier investment refund that steers spending toward climate and roads. The open question is how far local investment falls as a result.