French Budget Battle Threatens Government Stability

French Prime Minister Sebastien Lecornu faces a challenge in passing the 2026 budget without bypassing parliament. Efforts to reach a consensus with lawmakers, including Socialists and conservatives, have yet to bridge significant divides. Failure to pass the budget could lead to a no-confidence vote, jeopardizing the government’s stability.

In a bid to keep his promise of avoiding parliamentary shortcuts, French Prime Minister Sebastien Lecornu is attempting to pass the 2026 budget amidst considerable legislative dissent. Despite recent emergency measures to maintain government functionality, the divisions among lawmakers appear too wide to secure a majority vote.

Finance Minister Roland Lescure and Budget Minister Amelie de Montchalin engaged in negotiations with key lawmakers from opposing parties, seeking consensus ahead of the parliamentary session on Thursday. Should these efforts fail, Lecornu may turn to article 49.3 of the constitution, a move that could trigger a no-confidence vote.

France's precarious financial standing, highlighted by its significant deficit within the euro zone, adds pressure to the proceedings. With demands from Socialists to reinstate tax hikes and lift welfare freezes, the government faces an uphill battle to navigate fiscal policy and political tensions without compromising stability.

(With inputs from agencies.)