France’s bid to pass a state budget before year-end has hit a roadblock after negotiations between lawmakers collapsed, dealing a blow to Prime Minister Sébastien Lecornu and extending political uncertainty.
Parliamentary officials said on Friday that a joint committee of senators and members of the National Assembly failed to reach agreement on the 2026 budget. With no compromise in sight, France is now unlikely to adopt a new spending plan before the end of the year. Instead, the 2025 budget is expected to be temporarily extended into early 2026 while discussions continue.
“Parliament will therefore be unable to vote on a budget for France before the end of the year,” Lecornu said on X following the failed talks.
As the eurozone’s second-largest economy, France is under increasing pressure to rein in its budget deficit and mounting public debt. Those efforts, however, have been repeatedly stalled by political divisions. Lecornu, appointed in September after two predecessors were toppled over austerity plans, had promised to secure budget approval by year-end and ruled out using constitutional powers to bypass parliament—a tactic employed in the past.
Earlier this week, the government achieved a partial success when lawmakers narrowly approved the social security budget, a key part of overall public spending, while agreeing to postpone a contentious pension reform until 2028. Still, consensus on the wider state budget remains out of reach.
The deadlock reflects deep divisions between a right-leaning Senate pressing for tougher spending cuts and a fractured lower house, where left-wing parties are demanding higher taxes.
In response, Lecornu said he would begin talks with major political leaders on Monday to chart a path forward. His office also indicated that the government plans to introduce a “special law” allowing the 2025 budget to roll over temporarily, ensuring tax collection and public-sector wage payments can continue after January 1.
France’s central bank governor, François Villeroy de Galhau, warned that such a stopgap would offer only limited relief. Speaking to France Inter radio, he said extending the current budget would lead to a deficit “far higher than desired.”
The budget impasse comes amid a wider political crisis triggered by President Emmanuel Macron’s snap elections last year. Rather than strengthening his hand, the vote resulted in a hung parliament and stronger representation for the far right, complicating governance and delaying fiscal decisions.
Political paralysis had already delayed adoption of the 2025 budget, which was only approved in February after then–Prime Minister François Bayrou forced it through parliament. The latest setback highlights the continuing challenges facing France’s leaders as they attempt to restore fiscal stability in a deeply divided political landscape.
Source: Yen.com. gh
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