France has finally passed its budget for this year after months of political wrangling and a series of no-confidence motions. Prime Minister Sébastien Lecornu used special constitutional powers to push the budget through without a parliamentary vote, surviving the final two no-confidence votes on Monday evening.
The budget was passed after the Socialist party agreed not to vote against the government in exchange for concessions, including the suspension of President Emmanuel Macron's flagship pension reforms, which aimed to raise the retirement age from 62 to 64. Socialist MP Hervé Saulignac said his party had 'done its duty' and 'avoided the worst'.
Lecornu called the budget a 'breakthrough', highlighting a €6.5bn increase in defence spending. The budget targets a deficit of 5% of GDP in 2026, down from 5.4% in 2025, though the initial target of 4.6% was abandoned due to the scrapping of pension changes.
The budget process has been fraught with instability since Macron called a snap election in June 2024, which resulted in a hung parliament. A left alliance won the most seats but fell short of a majority, while the far-right National Rally became a significant force. Macron's centrist group lost seats but remained present.
Since then, domestic politics has been largely deadlocked, leading to the collapse of two previous governments. Michel Barnier was ousted after three months in 2024, and François Bayrou lasted nine months before being removed over the proposed 2026 budget. Lecornu, a key Macron ally, was appointed last autumn and seeks to remain in office until 2027.
With municipal elections next month and the presidential election in spring 2027, Macron is focusing on foreign policy, urging Europe to reduce dependence on foreign powers and taking a hard line against US President Donald Trump on tariffs and the Greenland crisis. Far-right leader Marine Le Pen, a potential presidential contender, is currently attending a retrial on appeal over embezzlement of European parliament funds.
