Following the joint committee's failure on December 19 and ongoing consultations, Prime Minister Sébastien Lecornu's government presented a three-article special law to the Council of Ministers on Monday evening, chaired by President Emmanuel Macron. Set for votes in the National Assembly and Senate on Tuesday, it extends 2025 budget terms temporarily to avert public service shutdowns, while Macron demands a full 2026 budget by end-January targeting a 5% deficit.
Update on Special Law Presentation
Chaired by President Macron after his return from Abu Dhabi, Monday evening's extraordinary Council of Ministers approved the special law project. Limited to three articles, it allows tax collection under 2025 terms, revenue allocation to local authorities, and market borrowing to maintain essential services. Public Accounts Minister Amélie de Montchalin described it on BFMTV as ensuring a 'minimum service,' cautioning against prolonged use due to impacts on taxpayers.
Political Outlook and Tensions
Macron emphasized the urgency of a comprehensive January budget meeting the 5% deficit target to fund priorities. Government spokesperson Maud Brégeon called the measure a temporary 'palliative,' freezing certain funds and blocking aids like MaPrimeRénov'. Negotiations continue, with Prime Minister Lecornu prioritizing talks despite PS leader Olivier Faure's criticism of right-wing intransigence and LR's Philippe Juvin eyeing an early January deal. Article 49.3 is increasingly discussed, even within PS circles. Court of Auditors head Pierre Moscovici urges a sub-5% deficit for EU credibility.
This echoes the 2024 emergency law post-Barnier government fall, which Bercy estimates cost the economy 12 billion euros, heightening business uncertainty.
