PARIS — The French state budget for 2026 officially passed through parliament on Monday, ending a months-long deadlock that had increased fears of a debt crisis in the European Union’s second-largest economy.
After months of cross-party negotiations failed to yield consensus, center-right Prime Minister Sébastien Lecornu activated a constitutional clause that allows the government to pass legislation without a vote in parliament. The use of that clause, however, allows lawmakers to put forward motions of no confidence, which, if passed, lead to the bill’s defeat and force the government to resign.
Lecornu’s minority government survived several no-confidence votes put forward by left-wing and far-right groups. His survival came down to a decision by the center-left Socialist Party not to join their former allies on the left in voting against Lecornu, in exchange for government concessions including €1 lunches for university students.
Lecornu had initially aimed to pass a budget that would bring France’s 2026 deficit to 4.7 percent of gross domestic product, but policy requests granted to various political groups bumped that figure to about 5 percent of GDP, per the government’s most recent estimate.
To avoid a U.S.-style shutdown after failing to finalize fiscal plans before the new year, last year’s budget was rolled over into January. The 2026 budget is expected to take effect shortly after receiving a green light from France’s Constitutional Court, which will proceed imminently with a routine legal review.