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1h ago

France Edges Toward Budget Compromise as Lecornu Plays Down Snap Elections

Lecornu is courting the Socialists, with a possible pause to the 2023 pension reform becoming the pivotal concession.

Sebastien Lecornu
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Der scheidende französische Ministerpräsident Sébastien Lecornu gibt im Hotel Matignon, der Residenz des Ministerpräsidenten, eine Erklärung ab.
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Overview

  • President Emmanuel Macron’s Wednesday-evening deadline looms as the resigned premier prepares to brief him and is slated to speak on France 2 at 20:00.
  • Lecornu says parties share the intent to pass a 2026 budget by year-end, pointing to a deficit goal around 4.7–5% of GDP and arguing this reduces the likelihood of dissolving the Assembly.
  • Talks center on winning Socialist support after they tied participation to suspending the 2023 pension reform, which Elisabeth Borne signaled could be paused as finance officials warned of hundreds of millions in costs in 2026 and several billions in 2027.
  • European scrutiny is intensifying, with ECB chief Christine Lagarde urging timely, credible fiscal plans and Fitch having downgraded France last month over political instability.
  • The crisis carries multibillion-euro costs—OFCE estimates about €15 billion through end-2025, the economics ministry previously cited €12 billion, and Allianz Trade puts dissolution costs near €4 billion—while media report prefects were told to prepare for possible 16 and 23 November elections if talks fail.