The French National Assembly approved a stopgap budget law for 2026 to keep the state running into January after lawmakers failed to reach an agreement on the full fiscal plan.
The so-called loi spéciale, which was also used at the end of last year, allows the state to continue collecting taxes and borrow money despite the lack of a full budget. The law effectively rolls over 2025 fiscal plans into the new year and is expected to be approved by the Senate later Tuesday.
French Prime Minister Sebastien Lecornu was forced to seek the emergency measure after lawmakers failed to reach a compromise on fiscal plans Friday, pushing discussions on the budget into the new year, and increasing doubts over how the government will rein in the deficit.
The government warned last week that the parts of the finance bills agreed so far would only bring the deficit to 5.3% of economic output in 2026, down from 5.4% this year. In his initial plans, Lecornu targeted a deficit of 4.7% but has since said the gap should be below 5%.
France’s public finances are under close scrutiny from investors and rating agencies, with its deficit among the largest in the euro area.
Lecornu’s minority government has little margin for maneuver in France’s deeply divided parliament, where budget battles have brought down successive administrations since President Emmanuel Macron lost his relative majority in an ill-fated snap election he called in 2024.
Macron told ministers this week that he wants a full budget passed as quickly as possible, according to the government spokeswoman.
With time short to forge a broad compromise, Lecornu may resort to a constitutional mechanism that allows the government to push legislation through parliament without a vote — a step he previously pledged to avoid. The move could still enable passage of the 2026 budget if he secures tacit backing from Socialist lawmakers. While its use could prompt no-confidence motions from the far right or hard left, such efforts would likely fail without Socialist support.
The National Assembly is set to resume debate on the full budget the week of January 5.