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French Parliament Passes Special Budget Law to Keep the State Funded

The stopgap preserves basic financing pending accelerated talks for a January budget.

Overview

  • Both chambers approved the temporary law on Tuesday with unanimous votes, and it now awaits presidential promulgation before December 31.
  • The three-article text authorizes collection of existing taxes, secures revenues for local authorities, and permits limited state and social-body borrowing without creating new spending.
  • Ministers describe the measure as a strict service minimum that sustains payments but freezes many investments until a full 2026 budget is adopted.
  • President Emmanuel Macron set a goal to deliver a budget in January with a 5% deficit target, as deputies prepare to restart deliberations in early January after ongoing holiday consultations.
  • Calls from parts of the right and center to use article 49.3 persist, but the prime minister has pledged to avoid it and ministers say a negotiated budget remains possible, with economists warning that prolonged reliance on the special regime would carry real costs.