France's 2026 Budget: A Political Success After Months of Turmoil

France's parliament passed the 2026 budget after two no-confidence votes failed, granting Prime Minister Sebastien Lecornu's government some stability. The negotiations had been tumultuous, with major political consequences, yet structural reforms and spending cuts remain unlikely before President Emmanuel Macron leaves office.

France's parliament finally approved the 2026 budget, delivering a critical win for Prime Minister Sebastien Lecornu's minority government after two failed no-confidence motions. This outcome affords the administration a measure of stability following nearly two years of political upheaval.

The budgetary process has already claimed the careers of two prime ministers, unsettled bond markets, and concerned European allies. Securing support from Socialist lawmakers through strategic concessions, Lecornu has managed to enhance his political reputation amid ongoing fiscal challenges.

Despite lingering economic difficulties, including a 5% GDP deficit, investor confidence is gradually returning. Nonetheless, President Emmanuel Macron's broader reform agenda remains stagnant as he focuses on foreign policy, leaving domestic uncertainties to simmer ahead of the 2027 presidential election.

(With inputs from agencies.)