France's 2026 Budget Crisis Deepens Amid Senate-Government Rift and Urgent Consultations

France is grappling with a major political and legislative crisis over its 2026 national budget, with parliamentary deadlocks threatening fiscal stability. Prime Minister Sébastien Lecornu faces mounting pressure after the Parliament failed to approve the budget for the second consecutive year, as mandated by the Constitution.

Following Emmanuel Macron's summit with Lecornu at the Élysée Palace on Friday, Lecornu was tasked with urgently preparing a national budget by January. Starting this week, the Prime Minister has begun extensive consultations with political parties to find a viable solution. Ahead of a crucial Council of Ministers meeting scheduled for tomorrow evening, Lecornu and Amélie de Montchalin, Minister of Public Accounts, are preparing to present a special law to address the absence of the 2026 finance bill (PLF). This special law will then be subjected to a parliamentary vote.

However, tensions between the government and the Senate have intensified. On Friday morning, budget discussions with the Senate’s mixed commission collapsed after just ten minutes, amid sharp disagreements. The Senate delivered a final budget proposal reflecting a 5.3% deficit, which government officials, including Economy and Finance Minister Roland Lescure, condemned as "unacceptable." Senators accused the government of sidelining their concerns, particularly highlighting the abandonment of pension reforms and what they described as a neglect of the Senate's input.

Lecornu, feeling targeted, decried the situation as a "vendetta" by Senate leaders, accusing them of deliberate sabotage. The Senate issued a strong communiqué blaming the government for the failure to reach an agreement and demanded decisive action, leading to calls for invoking the contentious Article 49.3 procedure to pass the budget without full parliamentary consent.

Despite this fraught environment, Lecornu immediately resumed efforts to regain control, signaling his unwillingness to capitulate to Senate demands. The government is now exploring alternative legislative strategies in anticipation of further budgetary impasses.

This prolonged crisis exposes deep fractures within France’s political framework, with critical negotiations underway to ensure the 2026 budget can be finalized and approved on time, averting potential fiscal and political turmoil.