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France's 2026 Budget Talks Collapse as Government Moves to Special Law

A temporary special law will be tabled next week to maintain state continuity.

Overview

  • A joint committee of seven deputies and seven senators declared itself not conclusive, ending hopes of passing a 2026 finance bill before 31 December.
  • Matignon has asked the Conseil d'État to review a draft special law authorizing continued tax collection and the carryover of 2025 credits, with a Council of Ministers slated for Monday and accelerated votes in both chambers expected by Tuesday.
  • Prime Minister Sébastien Lecornu will convene party leaders from Monday to seek a path to a full budget, with formal negotiations set to resume in January 2026.
  • The deadlock stems from a wide gap between a right‑led Senate pushing spending cuts and resisting new levies and a left in the Assembly seeking more revenue, with both camps trading blame.
  • Officials describe the measure as a stopgap that makes no policy choices and could increase the deficit, citing last year’s estimated €12 billion cost during weeks without a voted budget.