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France’s 2026 Budget Standoff Deepens as Senate Takes Up Original Text

The government vows to pursue a parliamentary compromise instead of forcing the budget through.

Overview

  • The National Assembly rejected the revenue section 404–1 after 125 hours of debate, voiding amendments and sending the government’s initial bill to the Senate this week.
  • Senior ministers maintain a deal is achievable and publicly rule out using article 49.3 or ordinances, with Amélie de Montchalin warning that failure could trigger a financial and economic crisis.
  • Les Républicains, who control the Senate, say they will strip tax hikes added in the Assembly and push deeper savings, while party leader Bruno Retailleau favors a temporary special finance law reconducting the 2025 budget.
  • The special finance law is now widely discussed as the near-term fallback to keep revenue collection and state payments going, though the government labels it a last‑resort, “service minimum” tool.
  • Against a December 31 deadline and slim prospects for a cross‑chamber compromise on social security, Franceinfo reports the executive is preparing a potential late‑December window if a special law proves necessary.