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France Prepares Special Budget Law as National Assembly Gridlocks

The government now favors a stopgap special law by year-end rather than ordonnances.

Overview

  • The minister for relations with Parliament said the executive will table a ‘loi spéciale’ if a 2026 budget is not adopted by December 31, a tool that would carry over 2025 rules to keep taxes flowing while spending is frozen.
  • Officials indicated the special law would need filing before roughly December 19 and would push substantive budget talks into early 2026, repeating the end‑2024 playbook.
  • Debate in the lower house remains stalled with a crush of amendments, and deputies expect the revenue section to be rejected by November 23 as the Senate signals no final vote before December 15.
  • Assembly president Yaël Braun‑Pivet urged procedural changes such as programmed debate time, thematic sequencing of revenues and spending, and stronger committee work, which would require broad political buy‑in and possibly constitutional discussion.
  • Seeking to ease tensions with local officials, Prime Minister Sébastien Lecornu floated a €500 yearly ‘régalienne’ premium for each mayor and a pre‑Christmas ‘mega decree’ to scrap about 30 norms, drawing cautious responses from the AMF as the Medef decried the Assembly’s tax‑heavy text as “suicidal.”