While economic and climate challenges are redefining political priorities, the French Senate is leaving its mark on the state budget for 2025. Between measures to revive a sluggish real estate market and tax adjustments in favor of the environment, these decisions crystallize political and economic tensions.
New measures to revive real estate in France
The review of the 2025 budget saw the Senate introduce significant amendments which aim to counter the inertia of the real estate market. A flagship measure now allows individuals to transfer up to 100,000 euros without taxation, provided that these funds are used for the acquisition, renovation or construction of real estate. Jean-François Husson, general budget rapporteur, specified that this initiative was designed to unblock a “blocked” real estate market. This provision, limited to the years 2025 and 2026, nevertheless triggered reluctance within the government, which would have preferred a restriction on new housing in order to contain the costs for public finances.
The senators also generalized the zero-rate loan (PTZ) for old and new housing, where the executive wanted to limit this advantage to new construction. This extension aims to broaden access to housing and stimulate investment in often dilapidated real estate. Thus, this disagreement between the Senate and the government reflects divergent visions on budgetary priorities and the balance to be found between economic recovery and control of public spending.
Towards more ambitious environmental taxation
At the same time, the tax adjustments adopted for the environment reveal an ambition to reduce ecological impacts with a view to promoting certain agricultural practices. Among the new measures, a tax of 5 cents on each unit of non-recyclable product, from consumer plastics to sanitary textiles, was approved. This tax should bring in 500 million euros and is in addition to the increase in VAT on bottled water, previously adopted. The goal is clear: to encourage a drastic reduction in the consumption of unsustainable products.
Farmers will benefit from a tax credit of 4,500 euros for the maintenance of hedges, a gesture welcomed by agricultural unions for its positive ecological benefits. However, in overseas territories, senators temporarily suspended some environmental taxes to encourage investment in more modern waste management infrastructure. In Corsica, a reduction in taxes on polluting activities has also been decided, which fuels criticism of a certain relaxation of fiscal rigor. These revisions reflect a desire to balance ecological transition and immediate economic concerns. However, criticism is pouring in, as some denounce a “tax madness” likely to further increase the burden on households and businesses.
The Senate's decisions demonstrate a complex trade-off between economic recovery, environmental protection and budgetary constraints. If the measures adopted promise to stimulate certain sectors, they also call into question their long-term financial viability. As the debate continues, these changes open the way to broader reflection on the role of taxation in the ecological transition and social justice.
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