French mid-sized city mayors warned that downtown retail remains the most vulnerable sector of the Action Cœur de Ville urban renewal program, pointing to a commercial vacancy rate that reached 14.5% in 2025 compared to 11.5% nationally, according to an association statement published by Localtis. Meeting in an interministerial steering committee on September 29, 2026, representatives from Villes de France pressed officials for substantial fiscal and regulatory interventions to protect neighborhood commerce from suburban expansion.
Mayors Demand Fiscal Reforms and Vacancy Taxes
The municipal leaders acknowledged positive aspects of the third generation of the program, known as ACV 3, which secures funding across 244 current cities for the duration of the municipal mandate with a mid-term review clause. Yet, roughly a year after the release of the Macarez-Saintoyant-Schelcher report, mayors argued that official responses fall short of the recommendations. They called for stricter regulation of commercial development on city peripheries, enhanced use of preemption rights, and an overhaul of the tax on vacant commercial properties.
According to Localtis, municipal officials criticized certain real estate investment firms for intentionally keeping properties vacant to manufacture advantageous fiscal deficits. Following the report’s release, Serge Papin launched the “Lever de rideau” plan from Saint-Quentin to reform the commercial vacancy tax, though the measure has not yet materialized. Mayors also pointed to underutilization of the downtown revitalization zones created in 2020, which allow municipalities to grant local tax exemptions but lack state financial compensation.
Program Achievements and Financial Demands
Despite ongoing retail pressures, municipal leaders highlighted strong overall participation in the revitalization initiative launched in 2018. Out of more than 13,000 referenced actions, 73% are delivered or underway. Financial commitments reached 15 billion euros by the end of 2025, enabling the renovation of over 329,000 housing units with the National Housing Agency (Anah) and nearly 32,000 units with Action Logement. Association figures show that 96% of mayors report satisfaction with the framework, and 98% want it renewed.
Villes de France requested explicit multi-year financial visibility, a clear timeline, and the prompt convening of a funding committee comprising the Banque des Territoires, Action Logement, and Anah. The association also emphasized the need for administrative simplification and clearer divisions of competence between municipalities and intercommunal structures regarding housing, economic development, and mobility.
Parallel Government Initiatives and Funding Additions
Ahead of formal program renewals, the French government and financial partners have rolled out targeted support mechanisms. The Ministry of Economy, Finance and Industrial and Digital Sovereignty noted that 2024 commercial vacancy rates in town centers stood at 14%, doubling from 6% in 2010 due to e-commerce growth and shifting consumer habits, as detailed on economie.gouv.fr.
To counteract this decline, the Banque des Territoires injected an additional 200 million euros into its retail plan in December, allocating 100 million euros to commercial revitalization property companies and 20 million euros to finance local commercial managers. These measures align with the broader national strategy encompassing the Action Cœur de Ville, Small Towns of Tomorrow (Petites Villes de Demain), and Villages of the Future programs.
Action Cœur de Ville and downtown retail vacancy
What is the Action Cœur de Ville program?
Action Cœur de Ville is a French national urban renewal initiative launched in 2018 to revitalize mid-sized city centers by improving housing, commerce, public services, mobility, and ecological transition.
Why are mayors concerned about downtown retail?
Mayors cite a rising commercial vacancy rate that hit 14.5% in 2025—outpacing the 11.5% national average—driven by suburban retail competition, e-commerce, and real estate strategies that leave storefronts empty.
What specific changes are local leaders requesting?
Elected officials are demanding stronger fiscal and regulatory tools, including a reform of the vacant commercial property tax, stricter controls on peripheral retail development, expanded municipal preemption rights, and multi-year financial clarity from state and institutional backers.
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