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France Passes 2026 Budget After Months of Political Deadlock

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France’s 2026 budget has finally been approved after two no-confidence motions failed in the National Assembly, bringing an end to months of political uncertainty. Prime Minister Sebastien Lecornu, leading a weak minority government, secured the passage of the budget with targeted concessions to Socialist lawmakers, including delaying an unpopular pension reform. Lecornu emphasized that the budget reins in public spending without raising taxes for households or businesses.

The delayed budget, which had unsettled markets and alarmed European partners, now provides a period of stability ahead of the 2027 presidential election. Despite a still-high deficit of 5% of GDP, investor confidence has improved, and the French debt risk premium has returned to pre-election levels. Lecornu’s flexibility and compromise have preserved Macron’s legacy of attracting foreign investment.

With domestic reforms largely stalled, President Emmanuel Macron is now focusing on foreign policy, including reducing Europe’s dependency on foreign powers and addressing trade disputes with the U.S. Meanwhile, the centrist bloc faces uncertainty with no clear successor, while former prime ministers Edouard Philippe and Gabriel Attal, along with Lecornu, position themselves for the upcoming presidential race.

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France PM Pushes 2026 Budget Through Without Vote

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French Prime Minister Sebastien Lecornu announced that he will use Article 49.3 of the Constitution to pass the 2026 budget without a parliamentary vote, after securing enough support to survive an expected no-confidence motion. Lecornu expressed regret for going back on his previous promise to avoid this procedure but said it was necessary to finalize the centrist government’s deficit-cutting budget. The lower house is expected to approve the income side of the legislation before it moves to the Senate.

To gain Socialist backing while keeping conservatives from opposing, the government has increased support for low-income households, extended affordable university meals, and promised more affordable housing. Measures to fund these initiatives include extending a corporate surtax on large companies, projected to raise €8 billion. Socialist leader Boris Vallaud indicated that these concessions might prevent the need for a no-confidence vote.

France has faced political instability over the budget, losing two governments and risking a snap election. While neither major party is fully satisfied with the proposals, they are reluctant to trigger early elections ahead of the presidential vote. Hard-left France Unbowed has promised to file a no-confidence motion, though analysts say the final budget, with higher taxes and increased spending, may weigh on investment and economic growth in 2026.

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French PM Pushes Emergency Budget Law to Prevent Government Shutdown

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French Prime Minister Sebastien Lecornu has begun urgent talks with political leaders to pass emergency legislation that would keep the French government functioning into the new year, after lawmakers failed to agree on a full 2026 budget. A joint committee from both chambers of parliament was unable to finalise the budget bill last week, forcing the government to seek a temporary rollover law to allow spending, tax collection and borrowing to continue from January.

Lecornu is consulting party leaders, excluding the far right and far left, ahead of a cabinet meeting where the stopgap budget is expected to be approved before being sent to parliament. Lawmakers are widely expected to pass the measure on Tuesday, buying time for further negotiations on a complete 2026 budget in January. France’s fiscal situation is under close scrutiny from investors and credit rating agencies, as it currently has the highest budget deficit in the euro zone.

However, the political situation remains fragile. Lecornu has ruled out using special constitutional powers to force a budget compromise, as doing so could trigger a no-confidence vote. His minority government faces deep divisions in parliament, where budget disputes have already brought down three governments since President Emmanuel Macron lost his majority in the 2024 snap election. Last year, reliance on similar emergency legislation delayed the 2025 budget and cost the state an estimated €12 billion.

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France Passes Social Security Budget by Razor-Thin Margin

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French lawmakers approved the 2026 social security budget in a tense vote, offering Prime Minister Sebastien Lecornu a short-term political victory but exposing deep fractures within the government. The bill passed by just 13 votes, emphasizing the fragile state of a parliament where no party holds a majority.

To secure Socialist support, Lecornu agreed to delay President Emmanuel Macron’s controversial 2023 pension reform until after the 2027 election. While the move ensured funding for healthcare, pensions and welfare, it triggered backlash from centrist and conservative allies who say the concessions are too costly and could push the country towards greater financial strain. The approved plan still leaves France facing a social security deficit near €20 billion, a system that represents more than 40% of public spending.

Despite the narrow win, tougher battles loom ahead as lawmakers prepare to vote on the broader state budget later this month. The government aims to cut the national deficit to below 5% of GDP, but with growing political hostility and no clear majority, another crisis remains likely. Recent budget disputes have already toppled multiple governments since Macron’s election setback last year.

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French PM Urges Lawmakers to End Budget Standoff and Pass 2026 Bill

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French Prime Minister Sebastien Lecornu has pressed lawmakers to pass the 2026 national budget before the end of the year, following the lower house’s rejection of key tax provisions. The bill now moves to the Senate, where a review will begin immediately, amid rising political tensions within France’s fragmented parliament.

Lecornu said there is still time to reach consensus and called on opposition groups to avoid blocking the legislative process. With President Emmanuel Macron’s minority government facing intense pressure from both the far right and far left, any setback could trigger a no-confidence vote that may topple the prime minister. He said he would meet party leaders in the coming days to negotiate a compromise.

Once the Senate debates the proposal, a joint committee will attempt to reconcile differences between the two chambers before a final vote in the lower house. Lecornu stressed that the government is determined to keep next year’s deficit below 5% of GDP, despite major revisions expected to the initial plan, which includes over €30 billion in deficit reduction primarily through spending cuts and selective tax increases.

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France’s Socialists Threaten to Topple Government Over Billionaire Tax Dispute

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France’s Socialist Party has warned that it will file a no-confidence motion by Monday if the government fails to include a higher tax on billionaires in the 2026 budget. Party leader Olivier Faure said the Socialists had shown restraint in not censuring Prime Minister Sebastien Lecornu so far but added that “if there is no change by Monday, it’s all over.” Talks on the budget’s tax and revenue measures began Friday in the National Assembly, with the Socialists accusing the government of unfairly targeting retirees, young people, and families.

The standoff poses a serious threat to Lecornu’s weak minority government, which relies on shifting alliances to pass key legislation. The Socialists hold enough parliamentary influence to bring down the administration if they join forces with both the far left and far right, who have also called for Lecornu’s removal. The prime minister had previously gained Socialist support by scrapping a controversial pension reform but now faces renewed demands for wealth redistribution.

The political uncertainty adds to growing concerns about France’s economic stability. Business activity in the country declined faster than expected in October, and Moody’s is set to review France’s credit rating after S&P Global issued a surprise downgrade last week. Lecornu, under pressure to cut the euro zone’s largest deficit, plans to reduce spending by over €30 billion next year to bring the shortfall down to 4.7% of GDP. A formal vote on the income portion of the budget is scheduled for November 4.

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Lecornu Unveils New French Cabinet Amid Mounting Political Unrest

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French Prime Minister Sebastien Lecornu announced his new cabinet on Sunday, retaining most of his previous top ministers despite pledging “renewal and diversity.” Reappointed just last week after a short 27-day tenure, Lecornu kept key figures such as Finance Minister Roland Lescure, Foreign Minister Jean-Noel Barrot, and Justice Minister Gerald Darmanin. Catherine Vautrin, a centre-right veteran, replaced Lecornu as defence minister, while Laurent Nunez, Paris police chief and former intelligence head, took over the interior portfolio.

The reshuffle comes at a critical moment as France faces a deep political crisis and urgent budget deadlines. Hard-left France Unbowed (LFI) and the far-right National Rally have announced no-confidence motions, setting up a tense parliamentary vote later this week. The Socialist Party, whose backing is vital for the government’s survival, remains undecided, with leader Olivier Faure declining to comment on the new appointments.

With France’s parliament fractured into opposing ideological blocs, Lecornu must steer the upcoming budget through treacherous negotiations. Key opposition demands include repealing Macron’s pension reform and reintroducing a wealth tax, both resisted by conservatives. Acknowledging the political uncertainty, Lecornu said he would not hesitate to resign again if “conditions were no longer met,” signalling the fragile balance of power in French politics.

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France Plunges into Political Turmoil as PM Sebastien Lecornu Resigns Hours After Forming Cabinet

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France was thrown into fresh political chaos on Monday after Prime Minister Sebastien Lecornu and his government resigned just hours after announcing a new cabinet line-up, deepening the country’s crisis and sending French stocks and the euro sharply lower. Lecornu, President Emmanuel Macron’s fifth prime minister in two years, stepped down saying he could not perform his duties amid threats from both allies and opposition parties to topple his newly formed government. His administration lasted barely 14 hours — the shortest in modern French history — as divisions within parliament widened.

Opposition leaders swiftly demanded that Macron either resign or call fresh parliamentary elections to end the deadlock that has paralyzed governance since his 2022 re-election. Far-right National Rally leader Marine Le Pen declared that “the farce must end,” while hard-left figure Mathilde Panot said Lecornu’s departure marked the countdown to Macron’s fall. The president, whose mandate runs until 2027, has so far ruled out resignation or another snap election, but his silence following Lecornu’s exit has fueled speculation about France’s next political move.

Markets reacted sharply to the turmoil, with Paris’ CAC 40 index falling over 1.5%, led by losses in banking stocks, and the euro slipping 0.7% to $1.1665. Analysts warned that the ongoing instability — three prime ministers defeated in less than a year — is eroding investor confidence and casting doubt on France’s ability to rein in public debt, which now stands at nearly 114% of GDP. The deepening crisis underscores how the Fifth Republic, founded in 1958 to ensure political stability, now faces one of its gravest tests as Macron’s centrist bloc struggles to hold the balance against a resurgent far-right and hard-left.

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Mass Protests Erupt Across France Against Austerity Plans

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Hundreds of thousands of people across France took to the streets on Thursday in nationwide protests against looming austerity measures, demanding President Emmanuel Macron and his new Prime Minister Sebastien Lecornu scrap planned budget cuts. Teachers, train drivers, hospital staff, and pharmacists joined the strikes, while students blocked dozens of high schools, calling for more public spending and higher taxes on the wealthy.

Union leaders warned the government to heed the anger on the streets, with CGT chief Sophie Binet declaring, “It’s the streets that must decide the budget.” The Interior Ministry had anticipated up to 800,000 demonstrators, and major disruptions were reported in schools and regional train services. Sporadic clashes broke out in cities including Nantes and Lyon, where police used tear gas and several people were injured.

Macron’s administration faces mounting pressure between protesters demanding social fairness and investors alarmed by France’s deficit, which nearly doubled the EU’s ceiling last year. Lecornu, who replaced ousted prime minister François Bayrou after his failed €44 billion budget squeeze plan, has signaled openness to compromise but must navigate a divided parliament. Over 80,000 security personnel were deployed nationwide, with police confirming more than 90 arrests by evening.

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Fitch Downgrade Puts Pressure on New French PM Lecornu Amid Budget Talks

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France’s credit rating has been cut by Fitch to A+ from AA-, its lowest on record, casting a shadow over newly appointed Prime Minister Sebastien Lecornu as he begins budget negotiations. Fitch cited political instability and rising debt for the downgrade, which comes just days after President Emmanuel Macron named Lecornu as his fifth prime minister in two years. While markets reacted calmly, analysts warned the move raises fresh risks ahead of upcoming reviews by Moody’s and S&P.

The downgrade complicates the government’s efforts to present a draft 2026 budget to parliament by early October. Lecornu faces the daunting challenge of balancing investor demands for spending cuts with pressure from unions, who have called nationwide strikes this week, and political blocs divided over tax and reform strategies. In his first interviews, Lecornu scrapped unpopular holiday cuts but left the door open to higher taxes on the wealthy, a move opposed by business groups and conservatives but supported by the Socialists as a condition for backing his government.

With France’s deficit at 5.4% of GDP, Lecornu has pledged to put public finances on a “healthy trajectory,” though he admitted the budget may not fully reflect his own convictions. Employers’ federation MEDEF has threatened mass mobilization against any wealth tax, while the far-right National Rally renewed calls for fresh elections. Analysts warn that continued political gridlock could lead to another downgrade, increasing borrowing costs and straining Macron’s already fragile government.

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