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Finance Committee Again Rejects France's 2026 Spending Plan

The government now weighs constitutional options to enact a budget before the end of the month.

Overview

  • Lawmakers in the National Assembly’s finance panel voted down the expenditures section in new reading after rejecting the revenues section the day before.
  • Rassemblement National, La France Insoumise, Les Écologistes and Les Républicains voted against, while the Socialist Party, MoDem and the EPR group abstained, with several smaller groups absent.
  • The budget rapporteur Philippe Juvin’s proposed across-the-board cuts of about €6.2 billion failed, as deputies refused reductions to Education, Ecology and nine other priority missions.
  • Adopting the Senate baseline with added amendments raised spending by roughly €6.8 billion and pushed the projected deficit to about 5.3%–5.4%, according to Juvin.
  • The full Assembly is set to debate the bill from Tuesday through January 23, and the government may resort to Article 49.3 or a negotiated ordinance to secure a budget this month while targeting a deficit below 5% and higher defense credits.