Overview

• The National Assembly unanimously approved the 'special law' to allow the government to collect taxes and borrow funds, maintaining essential state functions into 2025.
• The legislation follows the collapse of former Prime Minister Michel Barnier's government and the subsequent failure to pass a 2025 budget, leaving France in a rare political and fiscal deadlock.
• Proposed amendments, including indexing income tax brackets to inflation, were ruled inadmissible by the Assembly president, citing constitutional limits on the law's scope.
• The Senate is expected to finalize the law this week to ensure its enactment before the year-end deadline, avoiding disruptions to public services and state funding.
• Key fiscal measures, such as tax credit extensions and inflation adjustments, are anticipated to be debated in early 2025 under the new government led by François Bayrou.