French Parliament Passes Special Law to Maintain Government Operations Without 2025 Budget
The temporary measure ensures public services continue while the government works to establish a formal 2025 budget.
- The French Parliament unanimously adopted a 'special law' to allow the government to collect taxes and fund essential services in the absence of an approved 2025 budget.
- The law was introduced following the December 4 censure and resignation of the Barnier government, which halted budget discussions for 2025.
- This temporary measure only permits expenditures based on the 2024 budget and prohibits new fiscal policies until a formal budget is passed.
- Debates over whether to resume previous budget discussions or start fresh could delay the adoption of a full 2025 budget until at least April.
- The measure avoids a government shutdown, but concerns persist over worsening deficits and the need for urgent fiscal decisions.