France Adopts Emergency Special Law to Manage 2026 Budget Impasse

On December 22, 2025, the French Council of Ministers approved a special law designed to ensure the continuity of public funding amid ongoing deadlocks in adopting the 2026 state budget. This temporary emergency measure follows failed negotiations over the budget and is aimed at extending credits for ministries and allowing the collection of existing taxes while discussions continue.

Prime Minister Sébastien Lecornu, after consultations with political groups, presented the special law, which is expected to be examined and voted on by Parliament by Tuesday. Economy Minister Roland Lescure described the legislation as a 'minimum service,' buying time for finalizing the budget expected in January. President Emmanuel Macron emphasized the importance of maintaining a 5% deficit target while financing national priorities, underscoring the urgency for a finalized budget in the new year.

The special law includes the continuation of fiscal arrangements but also leads to the removal of some provisions, such as the credit d'impôt for organic farmers. The political atmosphere remains tense, with divisions particularly pronounced between the Socialist Party (PS) and The Republicans (LR), hindering swift agreement.

There is considerable pressure within government ranks and from the Élysée to deploy Article 49.3 of the Constitution, allowing the budget or the special law to pass without a parliamentary vote. Philippe Juvin, the budget rapporteur, suggested this forceful procedural move might be necessary, stating, "My wish is to take the Senate's text and amend it collectively. The Prime Minister could then engage a 49.3. We have had enough debates." Olivier Faure of PS cautiously accepted that normal debates could resume after the holidays, but also showed responsibility by acknowledging the possibility of 49.3 being used.

If invoked this week, 49.3 could trigger motions of censure from the opposition, adding uncertainty. A failed censure would lead the bill back to the Senate and possibly a repeated 49.3 application and further constitutional appeals, potentially delaying budget promulgation beyond the December 31 deadline.

As the holiday break approaches, all political actors face the delicate task of balancing urgent fiscal responsibility and political negotiations to avoid prolonging France's budgetary crisis.