French Government Races to Implement Emergency Budget Law Following Parliamentary Deadlock

The French government is urgently pushing to pass a special law to maintain state functions after the failure to adopt the 2026 budget before the new year. This legislative deadlock emerged after the mixed parliamentary commission failed to approve the budget, prompting consultations led by Minister Sébastien Lecornu with political leaders across the spectrum. Discussions have involved representatives from major parties including Renaissance, Horizons, MoDem, Liot, Republicans, Socialists, and Ecologists as the government seeks consensus to avoid fiscal paralysis.

The emergency measure, known as the 'special law,' is designed to extend the 2025 budget credits and ensure continuity in state spending and tax collection until a new budget text is voted through. This technical law aims to prevent a shutdown of government operations similar to the American scenario. The Ministry of Economy has highlighted that last year’s use of this emergency mechanism cost the French economy 12 billion euros.

The situation is critical, with parliamentary debates expected to begin swiftly in the National Assembly and a Senate vote planned by Tuesday evening. However, if these consultations fail to produce agreement, the government may invoke Article 49, paragraph 3 of the Constitution to pass the budget without a vote in the Assembly, underscoring the urgency and gravity of the deadlock.

Amélie de Montchalin, Minister of Economy, addressed the Senate on December 15 to explain the budget impasse’s implications. Meanwhile, Prime Minister consultations continue, balancing the options between presenting the special law in an emergency cabinet meeting and potentially using constitutional provisions to bypass parliamentary gridlock.

This fast-moving political maneuver illustrates the pressures on the French government to safeguard public finances and economic stability amid a divided parliament just days before the fiscal year-end.