French Government in Peril: Lecornu's Budget Battle

French lawmakers have narrowly approved the 2026 social security budget, a victory for Prime Minister Sebastien Lecornu but at significant political cost. Lecornu's concessions have strained alliances, leaving his government vulnerable as it seeks to pass the broader state budget amidst fiscal challenges and a divided parliament.

In a tight vote, French lawmakers narrowly approved the 2026 social security budget, marking a significant albeit costly victory for Prime Minister Sebastien Lecornu. The approval, which came with large concessions, has the potential to destabilize his fragile government.

Lecornu's success in securing Socialist backing required freezing President Macron's controversial pension reform until after 2027. While this move ensures funds for critical sectors like healthcare and welfare, it results in a fiscal shortfall nearing 20 billion euros.

With the broader state budget under Senate review, Lecornu faces an uphill battle. The government is striving to reduce France's sizeable budget deficit, but in a divided parliament without a clear majority, the path forward is fraught with uncertainty.

(With inputs from agencies.)