France: MPs back zero-interest "parenthood loan" of up to €100,000 in 2027 budget talks

France's National Assembly finance committee voted on Thursday, October 8, 2026, to create a new interest-free loan aimed at parents, the "prêt à taux zéro parentalité," as part of the 2027 budget bill. The vote came out of an amendment that broadened a measure originally proposed by Prime Minister Sébastien Lecornu.

What the committee approved

The scheme, as expanded by the committee, would let eligible households borrow up to €100,000 at zero interest to help finance a home purchase. It would apply to families with a child who is either already born or expected, as long as the child is under five years old. Unlike the government's original plan, the committee version carries no income condition, meaning households would not need to fall below an income ceiling to qualify.

The expansion was carried by an amendment from Modem/Les Démocrates deputy Jean-Paul Mattéi, whose party said the measure traces back to a proposal made in May by the Liot parliamentary group, according to LCP, the parliamentary television channel.

How it differs from the government's plan

Prime Minister Lecornu had unveiled the idea in late September as part of birth-rate support efforts, according to LCP. The government's original version reportedly set a higher ceiling — up to €180,000, according to Orange Actu — but restricted eligibility to households below an income threshold and to children up to age three. The committee amendment lowered the maximum loan amount to €100,000 while removing the income condition and raising the child's age limit to five.

Opposition and concerns raised

Left-wing deputies criticized dropping the income condition. Éric Coquerel, a La France Insoumise deputy, said he feared the change would put high-income families "in competition" with those who genuinely need the loan and cannot do without it, and separately argued the measure risked pushing up housing costs. Socialist deputy Iñaki Echaniz said that without an income limit, even the children of the country's wealthiest families could in theory qualify, citing businessman Bernard Arnault as an example, according to LCP.

Daniel Labaronne, a deputy from the governing EPR group, warned that removing the income condition could sharply increase the cost to the state, noting that the existing zero-interest home loan scheme (PTZ) cost €1.35 billion in 2025, per LCP's reporting. Green party (Écologiste) lawmakers reportedly opposed the whole device, calling it a "family bonus" that would mainly benefit households that are already homeowners rather than first-time buyers.

What happens next

A finance-committee vote in the French parliamentary process is indicative only and does not create any legal right. The measure must still be debated and voted on in the full National Assembly chamber, with floor examination of the finance bill due to start on October 13, 2026. If adopted there, it would then need to pass the Senate, survive a joint committee between the two chambers, and clear review by the Constitutional Council before becoming law as part of the 2027 budget. Implementing details — such as exact caps, quotas, application terms and required documentation on the birth or expected birth of a child — would still need to be set by decree.

Why it matters

The measure is framed by the government as part of a broader push to support birth rates and help young families buy homes. Its final shape — including whether the €100,000 cap, the under-5 age limit and the absence of an income condition survive floor debate — remains undecided, since the government's narrower, income-tested version could still be restored during the Assembly's plenary vote.