France’s parliament emergency budget
Paris (dpa) — French lawmakers passed an emergency budget bill on Tuesday after parliament failed to agree on a full budget for the coming year, averting a government shutdown.
The temporary arrangement allows the heavily indebted country to continue operating into 2026, enabling it to collect taxes, borrow money and fund essential state functions.
However, Economy Minister Roland Lescure emphasized on broadcaster BFMTV that this was only a “minimum service.” New investments are not possible with the special law passed by parliament. “The longer it takes, the more it will cost.”
President Emmanuel Macron’s government is pushing for a full budget to be adopted as soon as possible.
The transitional solution is inadequate and does not address France’s underlying fiscal problems, government spokeswoman Maud Bregeon quoted the president as saying.
France’s parliament emergency budget
A proper budget is expected by the end of January and is intended to reduce the budget deficit to 5%. The deficit is forecast at 5.4% for this year.
France urgently needs to rein in spending because of its high debt levels.
The failure to pass an austerity budget has heightened economic uncertainty, particularly for businesses, as the European Union’s second-largest economy still lacks a clear spending and savings plan.
The impasse has also increased pressure on Prime Minister Sébastien Lecornu and his minority government. Lecornu has repeatedly called on political parties to compromise.
While he succeeded in pushing through the social security budget after concessions and negotiations, efforts to secure approval for the main budget ultimately failed.
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