French Government Considers All Options Including Article 49.3 to Pass 2026 Budget Amid Political Tensions

The French government is currently resuming the examination of the 2026 state budget in the National Assembly amid intense political debate and a fragmented legislative environment. Following an unsuccessful first reading, the budget discussions recommenced on January 8, 2026, with the Public Accounts Minister Amélie de Montchalin emphasizing that no options would be ruled out, including the controversial use of Article 49.3 of the Constitution which allows the government to pass legislation without a parliamentary vote.

The government is aiming to reduce the budget deficit from 5.4% in 2025 to below 5% in 2026. To ensure continuity of government operations while the budget is debated, a special law was enacted at the end of 2025, maintaining 2025 tax rates into the new year. The current phase of budget review in the Assembly is scheduled to last until January 23, 2026, after which approval by the Senate or a third Assembly reading will be necessary.

Political tensions remain high as opposition parties, including the Socialist Party and other left-wing groups, have signaled strong resistance to the government’s proposals. Notably, representatives from France insoumise and the ecologists did not attend recent meetings aimed at budget discussions. Despite these challenges, Amélie de Montchalin expressed measured optimism about the possibility of a political agreement, highlighting that deputies present at discussions shared goals like reducing the deficit.

Montchalin also rejected the notion that attending negotiation meetings was politically aligning with the presidential majority, countering criticism from Jean-Luc Mélenchon. She stated, “I do not exclude anything that could lead to a budget for France,” leaving open the possibility that the government might use Article 49.3 if constructive political consensus remains elusive.

With over 2,000 amendments submitted to the budget bill, the debates are expected to be especially intense. The government and Parliament now face a critical period to either find compromise or resort to constitutional measures to finalize the 2026 state budget.