Following Parliament's unanimous adoption of a special finance law on December 23, 2025, to bridge funding amid failed 2026 budget talks, Prime Minister Sébastien Lecornu insists a compromise remains possible in January. Yet, the measure—echoing last year's—prolongs uncertainty rooted in the June 2024 National Assembly dissolution, with significant fiscal and political costs.
The political instability triggered by President Emmanuel Macron's dissolution of the National Assembly on June 9, 2024, has stymied budget negotiations for over 2.5 months, culminating in the joint committee's failure on December 19. The provisional finance law temporarily funds the state, administrations, and local authorities, preventing a shutdown but at a steep price.
Lecornu views the outcome as a partial setback, contrasting with the recent social security budget compromise achieved without invoking Article 49.3. He emphasized that setting aside 'political calculations' could enable agreement, framing delay as 'not a weakness.' However, Macron pressed for swift resolution during the December 22 Council of Ministers, suggesting use of 49.3 or ordinances if needed.
Fiscal tolls are mounting: Bercy pegs last year's similar law at 12 billion euros (a contested figure), while it freezes defense and energy investments. Without inflation-indexed income tax thresholds, around 200,000 households risk new tax liabilities. The French Economic Observatory projects a 6.5 billion euro revenue shortfall in 2026. Postponing debates to January exacerbates democratic fatigue and public distrust, especially with national debt rising and no clear deficit reduction trajectory, just 16 months before elections.
