France on the brink of budget paralysis. Parliament passed the rescue bill

The National Assembly, the lower house of the French parliament, passed a special law on Tuesday extending the provisions of this year's budget until next year. Earlier, parliamentarians failed to reach a consensus on the budget bill for 2026. Now the special bill will be considered by the Senate.

All members of the National Assembly, i.e. 496 people, voted for the bill. On Tuesday, the document will be sent to the Senate, whose vote will allow for its final adoption.

On December 19, the parliament issued a communiqué informing about the failure of the work of the commission consisting of representatives of the National Assembly and the Senate.

This result was expected due to significant differences between the version of the draft budget bill after modifications in the Senate, where the right wing has a significant influence, and the expectations of the left-wing opposition in the lower house.

The special act is intended to extend the assumptions of this year's budget – so as to ensure the functioning of the state despite the lack of a budget act. France found itself in the same situation a year ago, during the government of the previous prime minister, Francois Bayrou. Discussions on the actual budget are to be resumed in January 2026.

The issue of passing the budget is the biggest challenge for the minority government of Lecorn, which is constantly threatened – like previous governments – by a vote of no confidence from the opposition. The fall of the government would most likely mean early parliamentary elections. In addition France needs a budget to bring its out-of-control budget deficit and public debt under control.

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