French Government Faces Budget Deadlock as Parliamentary Debates Halted

The French government has paused its parliamentary budget debates for 2026 following an impasse in securing a consensus. Minister of Relations with Parliament Laurent Panifous announced on Thursday night in the National Assembly that discussions scheduled for Friday and Monday were canceled due to the inability to reach a compromise acceptable to the majority of deputies. Prime Minister Sébastien Lecornu is set to present a new compromise budget proposal by Friday, aiming to resolve the deadlock and facilitate the promulgation of the budget before Tuesday.

Public Accounts Minister Amélie de Montchalin accused opposition parties La France Insoumise (LFI) and Rassemblement national of obstructing the process, stating that the government had provided numerous opportunities for debate. Opposition voices pushed back, with Eric Coquerel, president of the National Assembly's Finance Committee and LFI member, criticizing the government for attempting to force a minority text on Parliament and blaming the government for the stalemate.

In parallel to the budget deadlock, Coquerel is investigating taxation policies toward France's ultra-rich. Prompted by statements from former Economy Minister Éric Lombard that thousands of wealthy taxpayers reportedly have zero taxable income, Coquerel examined Ministry of Economy and Finance documents to assess whether this issue is more widespread than previously thought. This deepened political discussions surrounding wealth taxation in France.

The government now faces the challenge of breaking the impasse without a parliamentary vote, possibly employing constitutional mechanisms such as Article 49.3 or ordinances to pass the budget. The situation underscores escalating tensions between the administration and opposition as they wrestle over fiscal policy for the year ahead.