“If we don’t have the budget adjustment we put in the budget, we will hit the wall,” Lescure said.
But France’s fragmented parliament failed to pass budgets before the new year in both 2024 and 2025, and the spring 2027 presidential election may further complicate efforts to seek compromise this time around. That could force Prime Minister Sébastien Lecornu to push through the budget using a constitutional backdoor that bypasses a parliamentary vote, but it would expose the minority government to potential motions of no confidence.
Lescure insisted that adopting a budget for next year was key to “reassure markets” and relaunch growth in the last quarter of the year. The French economy contracted by 0.1% in the first quarter of 2026 and recorded no growth in the three months that followed.
That anemic growth will likely complicate the government’s pledge to bring the deficit down to 5.4% of GDP this year, as the target was based on the assumption the economy would grow by 0.5% in 2026.
“The French economy is at a standstill,” Lescure said. “It has to restart.”