US EditionFrance to Use Special Law to Carry Over 2025 Budget Amid Parliamentary Deadlock
France's minority government seeks a temporary law to extend the 2025 budget amid a deadlock that risks increasing the fiscal deficit beyond 5%, the eurozone's highest, officials said.
- Prime Minister Sebastien Lecornu announced plans to seek a special law to carry the 2025 state budget into the new year, allowing tax collection after January 1 to continue civil servant pay.
- Political instability following last year's vote has undermined budget talks as snap elections left a hung parliament, and a tug of war between the right-leaning Senate and lower house has complicated budget passage.
- The narrow adoption of the social security budget kept parts of the plan moving while the rest stalled as a joint committee failed on Friday to reach a compromise on the state budget for next year.
- Economic authorities called the measure a short-term fix as central bank governor Francois Villeroy de Galhau Friday warned it would raise the deficit above desired levels, while Prime Minister Sebastien Lecornu said he will convene leaders Monday to seek a path forward.
- Prime Minister Sebastien Lecornu said on X that parliament cannot agree before year end and pledged an austerity budget without using constitutional shortcuts, noting, `Parliament will therefore be unable to vote on a budget for France before the end of the year`.
84 Articles
84 Articles
In France, the draft budget for 2026 failed. A conciliation committee with members of both chambers - that is, the National Assembly and the Senate - could not reach an agreement.
In the absence of a joint joint commission on the finance bill, the Prime Minister is about to trigger a special law to ensure the continuity of the state. Pending a return from the 49-3 beginning of 2026? The hypothesis is growing.
The French government must accept a new setback: Parliament could not agree on a budget for 2026. Premier Lecornu should now resort to a special law.
The French draft budget for the year 2026 failed in Parliament. A conciliation committee could not agree on a compromise on Friday. This makes a timely adoption impossible and offers explosives within the government. Now it is to judge a special law. The conciliation committee in the divided parliament could not agree on a budget for the coming year, as Members reported on Friday. Now it is expected that the new old Prime Minister Sébastien Leco…
The Print
The Straits TimesFrance to start 2026 without budget after talks fail
By Elizabeth Pineau PARIS, Dec 19 (Reuters) - France faces emergency stopgap legislation to avoid a government shutdown after lawmakers abandoned 2026 budget talks on Friday, failing to agree on a
Deputies and senators did not agree on the 2026 budget this Friday, December 19, excluding any adoption before the end of the year. After the CMP failed, the government is preparing for a special law to ensure the continuity of the state.
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