France has approved its 2026 budget after months of political gridlock that threatened both domestic stability and market confidence. Prime Minister Sébastien Lecornu invoked special constitutional provisions to pass the budget without a full parliamentary vote, navigating a series of no-confidence motions along the way. The government survived the final two votes on Monday evening, securing its immediate survival.
The budget deal came after negotiations with the Socialist Party, which agreed not to oppose the government in exchange for concessions, including a suspension of proposed pension reforms that would have raised the retirement age from 62 to 64. Lecornu described the budget as a "breakthrough," highlighting a €6.5 billion increase in defence spending and efforts to reduce the national deficit to 5% of GDP, down from 5.4% in 2025.
Political instability has marked France since a snap election in June 2024 produced a hung parliament. Successive governments, including those led by Michel Barnier and François Bayrou, failed to pass budgets, leaving Lecornu's administration to steer the country through prolonged uncertainty. However, the budget passage offers only a temporary reprieve, as the government remains fragile and limited in its ability to enact broader domestic reforms.
With municipal elections approaching next month and the 2027 presidential race on the horizon, attention has shifted to the country's political future. President Emmanuel Macron, barred from a third term, is focusing on foreign policy and European strategic issues, while the far-right continues to grapple with legal challenges that may affect its role in upcoming elections...