French lawmakers reject tax measures in 2026 budget bill ahead of Senate review
The French lower house on Saturday rejected the income portion of the 2026 budget bill, leaving uncertainty over whether the politically fragmented parliament can reach an agreement before year-end. The contested section, which deals with taxation, now moves to the Senate, where many of the amendments added by the National Assembly are expected to be removed.
Both chambers must approve the budget for it to pass without the government invoking special constitutional powers. After the Senate review, a joint committee will attempt to broker a compromise, News.Az reports, citing Reuters.
Finance Minister Roland Lescure expressed cautious optimism:
"We are only halfway through the parliamentary process, and I remain convinced that a compromise can be reached. I am confident that the majority of parliamentary groups can find the common ground needed for a budget that ensures stability and visibility for our businesses and citizens as we approach 2026."
Budget negotiations have become increasingly tense since President Emmanuel Macron lost his parliamentary majority in last year’s snap elections, triggering political instability. Last year, a dispute over the budget even led to a no-confidence vote that toppled Michel Barnier’s cabinet.
This year, Prime Minister Sebastien Lecornu has pledged not to use constitutional powers to push the budget through, giving lawmakers unprecedented freedom—but also adding uncertainty to the process. A key factor will be whether the Socialists, a pivotal swing bloc, reject or abstain on the two budget bills under discussion, potentially impacting the suspension of an unpopular pension reform proposed by the government.
Under the French constitution, if Parliament fails to act by early December, the government has the authority to impose the budget by decree.
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