After Failure of budget negotiations wants France Government extends the current budget into the coming year with a special law. The regulation would secure the state’s financing until January and confirms “the government’s will to give final negotiations a chance,” said a spokeswoman for French President Emmanuel Macron. The bridging law is expected to be passed by both chambers of parliament on Tuesday.
The new one Household Macron must “adhere to the deficit target of five percent and finance our priorities,” said Macron in a cabinet meeting, according to his spokeswoman. Budget Minister Amélie de Montchalin urged MPs to find a compromise for the 2026 budget by the end of January, which also includes tax increases. The aim is to “have a real budget, not just a minimal budget,” she told the BFM broadcaster on Sunday evening.
Two heads of government failed because of the budget dispute
The budget would be enforced using special powers, which would not require a final vote Prime Minister Sébastien Lecornu impede. To do this, the government would have to survive a subsequent confidence vote. Two heads of government have already fallen in a dispute over the budget. Lecornu had submitted his resignation for the same reason, but was then reappointed by Macron.
Lecornu presented his first budget draft in mid-October, with which he wanted to reduce the deficit to 4.7 percent of GDP. In its most recent version it would have resulted in a deficit of 5.3 percent. “With a deficit of more than five percent (of GDP), it will be dangerous for France,” warned the head of the French central bank, François Villeroy de Galhau, last week.
France currently has a record debt of 3.5 trillion euros, which corresponds to 117 percent of gross domestic product (GDP). A deficit of 5.4 percent is expected for 2025. Two rating agencies recently downgraded France’s creditworthiness.
