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France’s 2026 Budget Talks Collapse, Forcing Temporary Funding Law

Lawmakers missed the year-end deadline after a failed cross-chamber compromise.

Overview

  • The conciliation committee broke down on December 19, making passage before December 31 no longer possible.
  • Prime Minister Sébastien Lecornu said he will introduce a special law to extend current appropriations to maintain state financing.
  • The National Assembly could vote on the stopgap as early as Monday, with swift approval expected in both chambers.
  • Debate on the full 2026 budget will resume in January after the interim measure takes effect.
  • The clash centers on deficit targets, with the government aiming for 4.7% of GDP versus a Senate-backed 5.3%, as the central bank warned the stopgap could worsen the shortfall.