France's government is pushing emergency budget legislation through parliament to keep the state functioning into the new year after political deadlock derailed talks on the 2026 budget.
Lawmakers failed on Friday to reach an agreement on a full budget bill, forcing Prime Minister Sébastien Lecornu's minority government to seek a temporary measure that would allow public spending, tax collection and borrowing to continue in January. Without the legislation, France risks a partial government shutdown at the start of the year.
Government spokesperson Maud Brégeon said the emergency law was designed to buy time for final negotiations, stressing that it was not a substitute for a full budget. President Emmanuel Macron echoed that view, saying a proper budget must be adopted as quickly as possible in January.
France used a similar emergency budget law last year
Parliament is expected to approve the rollover measure on Tuesday, a move closely watched by investors and credit rating agencies. France currently runs the euro zone's highest budget deficit, putting additional pressure on the government to restore fiscal stability.
Lecornu has limited room to manoeuvre in a deeply divided parliament, where budget disputes have already brought down three governments since Macron lost his majority in a snap election last year. While some lawmakers have urged the prime minister to use special constitutional powers to force through a compromise, doing so could trigger a vote of no confidence.
France used a similar emergency budget law last year, extending spending authority until a full budget was passed in February, a delay the government said cost the state around €12 billion.
Government spokesperson Maud Bregeon:
"This special law is not a budget ... we must, as quickly as possible, in January, come up with a budget for the country."