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France's Government Pushes Contested €45 Billion Austerity Budget

Parliamentary debate could force the prime minister to use Article 49.3 to secure passage of the plan.

Overview

  • The National Assembly began formal debate this week over a 2027 budget that aims to find about €40–45 billion in savings to cut the deficit from 5.4% to 5.0% of GDP.
  • The government does not hold a stable majority in the Assembly and a Socialist pre-debate rejection motion failed, leaving regular passage of the plan unlikely.
  • Student, teacher and university protests have continued for weeks with demands for school repairs and more staff, increasing public pressure on lawmakers and the executive.
  • Prime Minister Sébastien Lecornu could invoke Article 49.3, a constitutional rule that lets the government adopt a law without a final vote unless a no-confidence motion succeeds, or issue a decree later in the year both of which would invite parliamentary challenges.
  • Marine Le Pen has publicly attacked an early EU budget deal and vowed to cap France’s net EU contribution at €5 billion which could reshape negotiations and add election-year pressure on domestic fiscal choices.