France Prepares Special Finance Law as Budget Negotiations Face Deadlock

French Minister Sébastien Lecornu has indicated that the government is ready to consider enacting a special finance law if the joint parliamentary commission (Commission mixte paritaire, CMP) fails to reach an agreement on the 2026 state budget. This statement was confirmed on December 18, 2025, underlining the urgency of meeting constitutional deadlines requiring the budget's promulgation by December 31, 2025.

Lecornu expressed concern that a radical faction within the Republican group in the Senate could jeopardize progress, complicating negotiations with other political parties. Senator Christine Lavarde warned that the CMP text acceptable to the Socialist Party likely would not secure a Senate majority, especially if it involves significant tax increases without corresponding savings – highlighting a potential impasse. The ecological party’s announced opposition further threatens the budget's approval in the National Assembly.

Despite these challenges, Lecornu emphasized the government’s full commitment to a fruitful CMP, acknowledging the process would be more difficult and politically charged than the recent Social Security budget, which narrowly passed. There is also the possibility the government might resort to using Article 49.3 of the Constitution to pass the budget without a parliamentary vote if agreement proves impossible.

Meanwhile, Lecornu successfully avoided motions of censure aimed at removing him, allowing budget debates to begin on solid governmental footing. Opposition groups, including La France Insoumise and the National Rally (RN), failed to unseat the Prime Minister. The RN vehemently protested their exclusion from Assembly vice-presidency positions, accusing the government of democratic manipulation.

The Assembly also approved the 2026 Social Security Financing Law (PLFSS), which includes suspension of the recent retirement reform, illustrating ongoing adjustments in social policy amidst budgetary complexities.

With only a few weeks to meet the constitutional deadline, the government’s strategic options now include pushing for a consensus in the CMP, possibly resorting to constitutional mechanisms, or ultimately enacting a special finance law to manage state finances in case of parliamentary deadlock.