8 months ago
French PM Faces Tightrope Budget Talks
The French Prime Minister, Sebastien Lecornu, is trying to pass the 2026 budget.
He wants to do this without using a special rule that would force the budget through without a vote, which he promised not to do.
But the different groups in parliament have very different ideas about the budget, and it's hard to find a middle ground.
The Socialists want higher taxes on big companies and no cuts to welfare.
The conservatives, who control the Senate, have removed those tax hikes, making the deficit worse.
If the Prime Minister can't get everyone to agree, he might have to use that special rule, which could lead to a vote that might make his government fall.
Everyone is watching closely because France has the biggest deficit in the euro zone, and they need to reduce it to under 3% by 2029.
French Prime Minister Sebastien Lecornu is attempting to pass the 2026 budget without invoking article 49.3 of the constitution, which would force the budget through without a vote.
Lawmakers are struggling to find common ground, with Socialists wanting higher taxes on big companies and conservatives removing those tax hikes.
France has the euro zone's highest deficit at 5.4% of GDP, and the government aims to reduce it to under 3% by 2029.
If the budget is not passed, it could trigger a no-confidence vote that might bring down Lecornu's minority government.
The Socialists face a delicate balance between extracting concessions and avoiding appearing reckless ahead of March's municipal elections.
- Who
- French Prime Minister Sebastien Lecornu, Finance Minister Roland Lescure, Budget Minister Amelie de Montchalin, Socialist and conservative lawmakers
- What
- Budget negotiations to pass the 2026 budget
- Where
- Paris, France
- When
- Talks resumed on Tuesday, January 7, with the lower house resuming review on Thursday
- Why
- To avoid a no-confidence vote and pass the budget without breaking the pledge to avoid forcing it through parliament
Key facts
- Prime Minister
- Sebastien Lecornu
- Finance Minister
- Roland Lescure
- Budget Minister
- Amelie de Montchalin
- Current Deficit
- 5.4% of GDP
- Target Deficit
- Under 3% of GDP by 2029
- Article 49.3
- Constitutional provision to pass budget without vote
- Upcoming Elections
- March municipal elections
Quotes
Amelie de Montchalin
French Minister of Action and Public Accounts
“I am not ruling out anything that could provide France with a budget.”
firstpost.com
