French 2026 Budget Crisis: Parliament Fast-Tracks Special Law, Consultations Begin

Building on the joint committee's failure on December 19, Parliament is accelerating adoption of a special law early next week to secure temporary state financing from January 1, while Prime Minister Sébastien Lecornu launches consultations with party leaders starting Sunday. Impacts include the suspension of the MaPrimeRénov' program.

Following the confirmed deadlock of the joint parliamentary committee (CMP) on December 19—as reported earlier—between deputies and senators on the 2026 finance bill, the finance committees of the National Assembly and Senate have called meetings for Monday and Tuesday. They will hear Economy Minister Roland Lescure, review the draft special law, and prepare for debates and votes: Assembly first, then Senate on Tuesday evening. A cabinet meeting is set for Monday afternoon after President Emmanuel Macron's return from Abu Dhabi.

This interim law authorizes collection of existing taxes, limits spending to essential 2025 services via decree, and mirrors the measure used in 2024 post-Barnier government fall. It blocks non-essential expenditures, prompting Housing Minister Vincent Jeanbrun to confirm MaPrimeRénov' suspension from January 1, stating on France 3: “No budget, no window.” He urged swift budget adoption to resume the energy renovation aid, paused earlier in 2025.

Prime Minister Lecornu, whose compromise efforts failed, begins consultations Sunday with Gabriel Attal (Renaissance) and Paul Christophe (Horizons), phone calls to Marc Fesneau (MoDem) and Christophe Naegelen (LIOT), then Monday meetings with Les Républicains, Socialist Party (10:30 a.m.), Communist Party (3 p.m.), and Ecologists (4 p.m.).

Public Accounts Minister Amélie de Montchalin called it a “service minimum” on BFM-TV, emphasizing a full budget by end-January with some tax hikes. LR President Bruno Retailleau advocates Article 49.3 for a responsible budget with cuts, while rapporteur Philippe Juvin proposes special law Tuesday followed by 49.3 in January. Ordinances face constitutional hurdles.

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Dramatic illustration of French parliament crisis: joint committee fails on 2026 budget, Prime Minister Lecornu plans special law to avert shutdown.
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French 2026 Budget: Joint Committee Fails, Special Law Planned for Monday

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As anticipated amid pre-CMP tensions, the joint committee on the 2026 finance bill failed on December 19, prompting Prime Minister Sébastien Lecornu's government to advance a special law for parliament review on Monday evening to avert a state financial shutdown from January 1.

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.

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The French Parliament unanimously adopted a special finance law on December 23, 2025, to prevent a state financial blockade starting January 1, 2026. This provisional text, presented by Sébastien Lecornu's government after failed negotiations on the 2026 budget, temporarily extends 2025 credits. Discussions on a full budget will resume in January amid ongoing uncertainties.

The French government canceled Thursday the debates scheduled for Friday and Monday at the National Assembly on the 2026 budget bill, postponing them to Tuesday, when it may opt for Article 49.3 or ordinances to pass the text without a vote. This decision follows what Matignon calls 'continuous sabotage' by RN and LFI deputies, making adoption by vote impossible. Prime Minister Sébastien Lecornu will present proposals Friday to attempt a compromise and avoid censure.

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The National Assembly resumes examination in commission on Thursday of the state budget for 2026, after a failed first reading. Public accounts minister Amélie de Montchalin rules out no method to pass the bill, including Article 49.3. The government aims for a deficit below 5% in 2026.

A poll reveals that 52% of French people anticipate the failure of the 2026 finance bill and want a censure motion against the Lecornu government. The finance commission rejected the first part of the budget, and debates in the National Assembly begin this Friday without using article 49.3. Oppositions, like the RN and socialists, threaten to block the bill with their counter-proposals.

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Debates on the 2026 budget in the French National Assembly are bogging down, with unusual alliances between RN, PS, and MoDem leading to the adoption of tax increases totaling 34 billion euros in 24 hours. Prime Minister Sébastien Lecornu describes the situation as a 'very uncertain endurance race', while general rapporteur Philippe Juvin deems it highly likely that the text will not be examined on time. Industrialists denounce overtaxation threatening reindustrialization.

 

 

 

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