France approves temporary budget after 2026 talks stall
After negotiations on the 2026 budget broke down, the National Assembly approved a "special finance bill" on Tuesday to ensure the continued operation of the state and public services.
From 1 January, it will authorise tax collection, rollover of 2025 spending allocations, and payment of France’s EU contribution, News.Az reports, citing foreign media.
For Economy Minister Roland Lescure, however, this special law is merely a “spare wheel” that will only allow France to “travel a few kilometres”.
Presented to the cabinet on Monday, the temporary bill is intended as a stopgap response after the 2026 budget talks failed after two and a half months of negotiations.
Laurent Panifous, the minister responsible for relations with parliament, said lawmakers would need to return to work “from the week of 5 January” to get the budget over the line.
According to the French finance minister, the public deficit would reach 5.5% of GDP in 2026 – up from 5.4% in 2025 – should the special bill remain in force all year. This would be due to economic uncertainty and would fall short of the government’s target of 5%.
Without a new budget, the government cannot introduce savings measures or set spending priorities, such as the €6.7 billion defence increase pledged by Prime Minister Sébastien Lecornu.
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