Strength in unity! In an open letter to François Bayrou, the fifteen largest representative associations of French Tech have joined forces. Among the signatories are France Digitale, France Deeptech, France Biotech, France Fintech, and Start Industrie.

They are all urging the Prime Minister and his government to preserve the JEI status within the PLFSS. Passed by the National Assembly last week, the bill is now under review by the Senate.

More specifically, they are asking François Bayrou to maintain the R&D expenditure threshold at 15%. This threshold allows startups that allocate 15% of their expenses to R&D to benefit from exemptions on employer contributions. Currently, 4,500 startups take advantage of this relief. However, the PLFSS proposes to increase this threshold to 20% of expenses, which, according to France Digitale, would exclude over 1,000 startups from the scheme. With this adjustment, the government aims to save nearly €200M.

"We understand the need to balance the country’s budget and are willing to contribute. However, it is crucial to preserve key mechanisms that enable our companies to innovate, hire, and position France at the centre of the technological and industrial landscape. These measures are not 'gifts' to businesses—they partly offset the burden of our mandatory contributions, which are among the highest in the OECD, and generate direct revenues and benefits for the country," the fifteen associations argue.

They also propose working with the Prime Minister to identify alternative savings.

A struggling French Tech

This call comes at a time when the 2025 Finance Law, enacted last week, has already introduced unprecedented budget cuts for French Tech. This includes:

  • The abolition of the "young doctor" tax incentive
  • The removal of patent expenses from the Research Tax Credit (CIR)
  • A weakening of the Innovation Tax Credit (CII), despite its extension
  • A 30% reduction in the France 2030 plan’s budget for this year

"In a geopolitical context where the United States is massively increasing investments and China is deploying vast resources to dominate strategic industries, it is incomprehensible that we are choosing to slow down our innovation efforts. These decisions send a concerning signal to our country’s entrepreneurs, researchers, and investors. They contradict the ambition expressed at the AI Action Summit to make France a leader in artificial intelligence," the associations state.

Additionally, the letter urges the Prime Minister to restore the "young doctor" incentive and patent expenses within the Research Tax Credit. It also calls for the extension of the Innovation Tax Credit until 2027.

Now, the question remains—will François Bayrou and his government heed this urgent plea?