Overview
- Prime Minister Sébastien Lecornu confirmed that no 2026 budget will be finalized this year after a joint committee failed to reach a compromise.
- Lawmakers plan to pass a temporary measure that rolls over the 2025 budget to keep government operations running, with Lecornu meeting party leaders on Monday.
- The government insists next year’s deficit must stay below 5%, while the Senate approved a 5.3% plan after conservatives blocked tax increases.
- Socialists in the lower house are pressing for higher taxes on the wealthy, and conservative groups are rejecting tax hikes, stalling consensus.
- France’s central bank chief warned an emergency rollover makes no policy choices and can add costs, noting last year’s stopgap cost €12 billion as some conservatives urge special powers that Lecornu has resisted due to no-confidence risks.