The French National Assembly has approved a special temporary law to prevent a shutdown of the government and public services from January 1. The decision was made after lawmakers failed to agree on a full budget for 2026. This was reported by Bloomberg, writes UNN.
Details
The emergency measure allows the state to collect taxes and make critical expenditures until a final financial plan is approved.
The special law effectively duplicates the fiscal parameters of 2025 for the beginning of the new year. This gives Prime Minister Sébastien Lecornu's government additional time to negotiate with the opposition. The Senate is expected to support this move in the near future.
This special law is not a budget. We must develop a full budget for the country as soon as possible, in January.
Battle over deficit in a divided parliament
The main stumbling block remains the level of the budget deficit. Lecornu aims to reduce it to 5% of GDP (in 2025 the figure was 5.4%), while initial plans envisaged a stricter reduction to 4.7%. France is under pressure from international ratings and investors, as its deficit is one of the largest in the eurozone.
The situation is complicated by the absence of a stable majority in parliament. The minority government is forced to maneuver between left-wing socialists and the far-right.
I remain convinced that the majority of parliamentary groups will be able to find common ground to allow our country to have a budget.
Further steps and constitutional risk
If a compromise is not reached by early January, the prime minister may invoke Article 49.3 of the Constitution, which allows a law to be passed without a vote by deputies. However, this step carries the risk of a vote of no confidence in the government. For Lecornu's cabinet to survive, the support or at least neutrality of the socialists is critically necessary.
The National Assembly plans to resume debates on the full 2026 budget on January 5.