France Faces Heated Debates and Political Tensions Over 2026 Finance Bill

The French government is navigating a tumultuous path as it resumes debates over the 2026 finance bill, with contentious taxation measures and the looming possibility of invoking the constitutional article 49.3 to pass the budget.

Discussions on the finance bill are set to recommence on January 8 in the finance committee at the Palais Bourbon, based on the version previously approved by the Senate on December 15. Key hot-button issues include a surtax on corporate profits, cuts to ministerial budgets, and a new tax targeting holdings, which have all sparked significant debate and opposition.

Despite the government’s prior success in passing the Social Security budget before Christmas, deputies in the National Assembly are largely expected to reject the state budget law regardless of its content. This presents a significant political challenge for Prime Minister Sébastien Lecornu, who faces a dilemma over whether to employ Article 49.3 of the French Constitution, a controversial measure that allows the government to bypass parliamentary approval to enact legislation.

Lecornu had previously pledged to avoid using Article 49.3 for both the Social Security and state budgets, but with opposition entrenched and no clear majority support, he must decide between risking a budget impasse or breaking his promise and forcing through a financial law that will likely draw widespread dissatisfaction.

The situation highlights the deeply divisive nature of France’s 2026 finance bill and the complex balancing act the executive must perform to secure its approval amidst political resistance.