France’s 2026 state budget has finally been adopted by parliament, concluding months of intense political wrangling and deadlock. The passage of the budget marks a significant moment for Prime Minister Sébastien Lecornu‘s minority government, which navigated a series of no-confidence votes to secure its approval.
After cross-party negotiations failed to achieve consensus, Prime Minister Lecornu invoked Article 49.3 of the French constitution. This allowed the government to pass the budget without a direct parliamentary vote, but it also opened the door for no-confidence motions. The government successfully weathered these challenges, with left-wing and far-right parties failing to gather enough votes to force a resignation.
The survival of Lecornu’s government was significantly influenced by the center-left Socialist Party, which abstained from voting against the budget in exchange for key concessions from the government. This move effectively blocked the opposition’s attempts to bring down the administration.
The final 2026 budget is a product of extensive parliamentary compromise, incorporating amendments from various political groups. While initially aiming for a deficit of 4.7 percent of GDP, concessions have reportedly pushed this figure closer to 5 percent. The budget includes measures such as increased taxes on large corporate profits, expected to generate over €7 billion, and a significant boost in military spending by €6.5 billion.
Key concessions secured by the Socialist Party include the suspension of a controversial pension reform that would have raised the retirement age and the introduction of a one-euro lunch program for university students. These compromises highlight the delicate balancing act required to pass legislation in France’s fragmented parliament.
The prolonged budget debate underscored deep divisions within the French parliament, particularly following the 2024 snap elections that resulted in a hung parliament. France faces increasing pressure from the European Union and credit rating agencies to manage its public debt, which is among the highest in the EU. The budget’s adoption is seen as crucial for fiscal discipline and stability.
Despite the budget’s passage, some lawmakers have expressed concerns about the realism of the deficit reduction targets and the potential impact of tax increases on economic activity. The budget will undergo a routine legal review by France’s Constitutional Court before officially taking effect.
Prime Minister Lecornu expressed relief on social media, stating that France “finally” has a budget that makes clear choices and addresses essential priorities, while also curbing public spending without raising taxes for households and businesses.