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Tax expenditures, subsidies and fraud, Édouard Philippe

Public aid to businesses: €50bn less in « improductives » [“unproductive”] subsidies, in exchange for €50bn in taxes

Direction of change: decrease, compared with current law.

The lever. Subsidies, tax credits and exemptions granted to businesses: amount, conditions, commitments in return (jobs, climate, dividends). Direction rule: ↑ more aid.

« Conclure un pacte fiscal inédit avec les entreprises : 50 Md€ de baisses d'impôts de production contre 50 Md€ d'aides publiques improductives en moins, le plus grand choc de compétitivité jamais réalisé. »1

Translation by the editorsConclude an unprecedented tax pact with businesses: €50bn of cuts in production taxes in exchange for €50bn less in unproductive public subsidies, the biggest competitiveness shock ever achieved.

Words of Édouard Philippe, Site de campagne « Avec Édouard 2027 », priorité « Pour une France plus prospère » (page non datée, consultée le 13 octobre 2026), 13 October 2026. Position taken from public statements, not from a written programme.

No programme released. Positions taken from public statements, words of associates or documents of the candidate’s party, each dated and sourced; last recorded on 18 October 2026.

Encoding

No cost-schedule parameter for this position: see the costing for the reason.

Costing

Announced by the candidate

+€50bn

per year, saving. « 50 Md€ d'aides publiques improductives en moins » [“€50bn less in unproductive public subsidies”], in exchange for « 50 Md€ de baisses d'impôts de production » [“€50bn of cuts in production taxes”]: period (per year or over the five-year term) not specified.

Published costings

none

No external costing of this position recorded to date.

Our calculation

not costed

Pure amount with no named measure, not costed (decision of 18 October 2026, common rule): « 50 Md€ d'aides publiques improductives en moins » [“€50bn less in unproductive public aid”], without saying which (budgetary spending, €30bn; tax expenditures, €40bn; reductions in contributions, €80bn, according to the minister's breakdown cited by the Senate) or whether the amount is per year or over the five-year term; it is cited next to the total, without being counted. Former costing: €50bn of savings a year taken at the candidate's amount. Treated like the €50bn cut in production taxes that it funds (“Production taxes” lever), also not costed.

Current law, sources and limits of the cost schedule

Current law. There is no legal definition and no regularly updated official costing. The Senate commission of inquiry (report No. 808, July 2025) estimates aid at « au moins 211 milliards d'euros en 2023 » [“at least 211 billion euros in 2023”] in the broad sense, and at €108bn excluding Bpifrance, reclassified tax expenditures and VAT. The minister at a hearing: €150bn (40 in tax expenditures, 30 in budget spending, 80 in reductions in social contributions). In national accounts terms, non-financial corporations received €73bn in aid in 2024 (Fipeco).

Horizon. Full year; 2023-2025 values.

Limits. The scope is decisive: it makes the amount vary from €73bn to €211bn. The cost schedule uses only one, without overlap: the €30bn of budgetary spending in the minister's breakdown. Reductions in social contributions (€80bn) are costed under the “Reductions in social contributions on low wages” lever, tax expenditures (€40bn) under the “Tax and social security expenditures” lever. Changing the reductions has an effect on employment; static costing does not measure it. Making aid conditional (counterparts) cannot be costed as such. The 10% cut is given by the linear parameter; the abolition of the CIR (research tax credit) is under the « niches-fiscales » lever. Reduction announced as an amount without a list of the aid targeted: a pure amount with no named measure, not costed, cited next to the total (decision 1 of 18 October 2026, common rule), like the cut in production taxes announced as an amount (“Production taxes” lever).

How to read these amounts. These are static costs and revenues, with no feedback effect, over a full year: nothing on growth, employment or the revenue that economic activity would gain or lose. A higher net cost does not on its own make a worse policy, nor net savings a better one: each programme rests on an economic model (demand-led stimulus, lower compulsory levies, consolidation of the public accounts…) that the cost schedule does not settle. GDP itself measures a volume of activity, not well-being or the usefulness of what is produced. Economic models and feedback effects.

This lever in the method · Costing for Édouard Philippe

  1. Site de campagne « Avec Édouard 2027 », priorité « Pour une France plus prospère » (page non datée, consultée le 13 octobre 2026), 13 October 2026. Words of Édouard Philippe. Position taken from public statements, not from a written programme. Read the source (Site de campagne « Avec Édouard 2027 », priorité « Pour une France plus prospère » (page non datée, consultée le 13 octobre 2026)).

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