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France

French Government Races to Pass Key Energy Reforms Ahead of Crucial Confidence Vote

NasirMehmood September 4, 2025 0 2 min read
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The Bayrou government is pushing to finalize several major energy transition and renovation measures before a critical parliamentary confidence vote scheduled for September 8, 2025. With its future hanging in the balance, the administration is accelerating procedures to secure reforms related to housing insulation, electric vehicles, and renewable energy support.

Prime Minister François Bayrou has called an extraordinary parliamentary session for September 8, which will include debates on public finance management and efforts to reduce the public deficit by nearly €44 billion. Meanwhile, ministers are fast-tracking approximately a dozen decrees and regulatory orders through mandatory advisory bodies like the Higher Energy Council and National Housing Council.

Key measures awaiting approval include modifications to the MaPrimeRénov’ home renovation subsidy program, which will see reduced funding for comprehensive renovations while excluding standalone biomass boiler installations and wall insulation projects starting September 30. The government also aims to implement changes to energy saving certificates (CEE), redirecting private funds toward heat pumps and electric vehicles.

New rules for electric vehicle subsidies will require vehicles and their batteries to be manufactured within the European Economic Area to qualify for enhanced incentives starting October 1. Additionally, a reduced 5.5% VAT rate will apply to solar panel installations meeting specific environmental criteria, though industry representatives note that currently no available panels on the market satisfy these requirements.

The government’s urgency stems from the possibility of its collapse following the confidence vote, which would leave these reforms in limbo. Energy Minister Marc Ferracci and Housing Minister Valérie Létard are working to publish these measures in the Official Journal before any potential government change.

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