France Pauses Budget Fight as Lecornu Weighs 49.3 or Ordonnances by Tuesday

Overview

• Parliamentary sessions set for Friday and Monday were canceled and pushed to Tuesday, when the government says it will decide between article 49.3 and an ordonnance to pass the 2026 budget.
• Matignon will present revised proposals on Friday aimed at a non‑censure understanding, focusing outreach on the Socialist Party and allied independents.
• Using article 49.3 would tie the budget to a confidence risk, whereas an ordonnance would enact the budget without a vote but faces sharp legal and political objections as a first for public finances.
• Officials warn the deficit now sits around 5.3% of GDP versus a 5% goal and say no definitive budget is expected before mid‑February.
• Erratic votes in the Assembly included the defeat of a big‑company surtax and an RN‑driven cut to local funding, prompting government accusations of sabotage by LFI and RN and fresh warnings from PS figures against any budget by ordonnance.