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France to Pass 2026 Budget via Article 49.3 Despite No‑Confidence Threat

The package funds concessions with an extended levy on large firms to raise about €8 billion to keep the deficit within a 5%‑of‑GDP ceiling.

Overview

  • Prime Minister Sébastien Lecornu said he will activate Article 49.3 on Tuesday to adopt the budget without a parliamentary vote after negotiations broke down.
  • La France Insoumise will file a motion of censure, while Socialist leader Boris Vallaud indicated the latest concessions could keep his party from backing a government‑toppling vote.
  • To win support from the left, the plan retains pension tax relief and increases a low‑income workers’ supplement by about €50 per month for 3 million families, alongside expanded student meals and housing measures.
  • Financing would be bolstered by extending a temporary additional tax on large companies through 2026, expected to raise roughly €8 billion.
  • Lecornu reiterated the deficit will not exceed 5% of GDP, even as ministers warned the 49.3 route is politically risky and requires assurances to avoid government collapse.