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2mo ago

France’s 2026 Budget Is Now Law After Constitutional Green Light as Audit Office Warns on 5% Deficit Goal

The Cour des comptes says the target remains very uncertain without sizable spending cuts and structural reforms.

Hormis une petite dizaine de « cavaliers budgétaires », c’est-à-dire des dispositions qui n’ont pas de place dans un projet de loi de finances, le Conseil constitutionnel a validé la grande majorité du budget 2026.
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Conseil constitutionnel (Archives). [AFP]

Overview

  • After validating nearly all provisions and rejecting seven budget riders, the Conseil constitutionnel cleared the finance law with narrow reservations on court cost recoveries and APL limits for non‑EU, non‑scholarship students.
  • The law’s promulgation in the Journal officiel ends the temporary stopgap that had extended 2025 appropriations during months of parliamentary deadlock.
  • The government now targets a 5% of GDP deficit in 2026, revised from 4.7%, after a 5.4% shortfall in 2025 that the Cour des comptes deems crucial to meet to avoid market distrust.
  • France’s audit body projects public debt around 118.6% of GDP at end‑2026 and notes last year’s modest deficit improvement relied almost exclusively on higher taxes rather than spending restraint.
  • The budget’s passage followed a turbulent process that included three uses of article 49.3, failed no‑confidence motions, and concessions to the left.