Overview
- Prime Minister Sébastien Lecornu invoked Article 49.3 to advance the budget and then survived two no-confidence motions that fell short of the 289 votes needed to oust his government, with tallies of 260 and 135.
- Defense outlays rise by roughly €6.5–€6.7 billion, financing a new nuclear-powered attack submarine, 362 armored vehicles, Aster surface-to-air missiles and a new voluntary service program.
- The plan targets a deficit of 5% of GDP in 2026, underpinned by about €9 billion in spending cuts after the original €17 billion savings goal was pared back.
- Revenue steps include extending a surtax on very large companies expected to raise about €7.3 billion, alongside smaller measures affecting top earners, certain luxury assets and low-value parcels.
- To secure Socialist support, the government postponed the pension-age increase until January 2028 and added social measures such as €1 student meals, while investors welcomed the outcome with France’s debt spread narrowing.