French Finance Committee Rejects 2026 Budget Spending Proposal Amid Political Divisions

The French National Assembly's Finance Committee has once again rejected the spending component of the 2026 state budget, intensifying the parliamentary debates over the nation’s fiscal plans. This rejection comes after failed negotiations in December, with opposition parties including the RN, LFI, Écologiste, and LR voting against the budget, while groups such as PS, MoDem, and EPR abstained. Several deputies were absent during the vote, highlighting divisions within the Assembly.

Budget discussions resumed based on the version adopted by the Senate in December 2025, with the government aiming to finalize the budget by the end of January to reduce the national deficit to below 5% and increase defense spending. However, the Finance Committee rejected both the spending and revenue parts of the proposed budget. Notably, the overall spending was increased by €6.8 billion compared to the Senate’s version, worsening the projected deficit to 5.3%, or 5.4% when accounting for the delayed budget adoption.

Philippe Juvin, Budget Rapporteur from Les Républicains, proposed a general cut of €6.2 billion across all budgetary missions except essential state functions. His proposal sought to reduce funding to sectors including Education and Ecology, but it was largely rejected due to priorities held by the Socialist Party and others. As a result, spending for nine missions, including health and sports, was maintained, contributing to the budget’s higher cost.

The rejection in the committee, which has advisory authority, signals ongoing political disagreement over fiscal priorities and the government’s approach. Discussions have not clarified a potential non-censorship agreement between the government and the PS, especially if the Prime Minister opts to pass the budget using Article 49.3 or a negotiated ordinance under the Constitution.

The government’s goal remains to adopt a budget that sufficiently contains the deficit while increasing defense credits. The Assembly’s broader debate is scheduled to begin on January 13 and continue until January 23, with hopes to complete budget approval by month’s end.