US EditionFrance Passes Delayed 2026 Budget, Ending Months-Long Saga
The budget includes a €7.3 billion tax on large corporate profits and aims to reduce the deficit to about 5% of GDP, after suspending pension reform to secure Socialist support.
- After months of deadlock, France's 2026 budget was adopted on Monday after two no-confidence motions failed, with the Socialists refusing to back them.
- Faced with stalled negotiations, the government invoked Article 49.3 after months of impasse following the 2024 snap election and a hung parliament.
- According to the adopted text, the budget raises defence spending by 6.5 billion euros, increases taxes on some businesses including large companies to raise 7.3 billion euros, and targets a budget deficit of five percent of GDP in 2026.
- The adoption gave Prime Minister Sebastien Lecornu's minority government relative stability, investors and markets reacted positively, and the debt risk premium over the German benchmark returned to pre-snap election levels.
- Political analysts note the fragmented centre leaves uncertainty over whether a mainstream candidate can reach the second round, while the far right remains strengthened, as lawmakers avoid unpopular measures.
165 Articles
165 Articles
Administered by an accounting logic, Sébastien Lecornu's budget confirms new cuts in public services without reinvesting in the economy. An inconsistent choice, at a time when unemployment is rising and corporate bankruptcies are increasing.
France passes budget after failed no-confidence votes
France passed an annual budget, ending a long-running debacle that felled prime ministers, amplified support for the far right, and raised doubts over the country’s long-term finances. The spending plan falls short of the government’s stated deficit target — it offered several concessions to head off multiple no-confidence motions — but nevertheless pares back outlays and increases taxes in an effort to bridge a yawning fiscal gap. The dealmakin…
The Socialists allow the survival of the Executive headed by Prime Minister Sébastien Lecornu. More information: Lecornu activates the 'decree' to approve the budgets: Le Pen and the insubmissives present two motions of censure
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