Overview
- The temporary law allows tax collection, borrowing and payment of civil servants while prohibiting new investments or cost-cutting measures until a full budget is approved.
- The government says talks will resume with the aim of presenting and passing a 2026 budget by the end of January to meet the 5%‑of‑GDP deficit target.
- Budget Minister Amélie de Montchalin estimates the two‑month delay could cost roughly €12 billion.
- Calls are growing for the use of Article 49.3 to force a budget through without a final vote, though Prime Minister Sébastien Lecornu has pledged not to invoke it.
- France faces heavy fiscal pressure with public debt near €3.5 trillion (about 117% of GDP), a 2025 deficit estimated at 5.4% and recent credit downgrades increasing borrowing costs.