French Government Races to Pass Special Law Amid 2026 Budget Deadlock

Following the failure to reach an agreement on the 2026 state budget, the French government is urgently preparing to pass a special law to temporarily finance the state and its administrations, thereby avoiding a government shutdown akin to those seen in other countries. This is a stopgap measure pending renewed budget negotiations set to resume in January, which are expected to produce a comprehensive finance law including tax increases by the end of that month.

Parliament is mobilizing rapidly with finance committees of both the National Assembly and Senate scheduling hearings for Economy Minister Roland Lescure on December 22 and 23 to review the proposed special law ahead of its official adoption. Prime Minister Sébastien Lecornu has not formally confirmed the use of this special law but is conducting consultations with political leaders across multiple parties, including Renaissance, Horizons, Les Républicains, the Ecologists, the Socialist Party, MoDem, and the Rassemblement National, in an effort to overcome the deadlock.

The government has devised a tight timeline aiming to vote on the special law within approximately 24 hours, with a cabinet meeting scheduled for December 22. The right-wing Les Républicains party is pressing for the invocation of Article 49.3 of the Constitution, which allows the passage of legislation without a vote, as a means to expedite the budget’s adoption. However, Prime Minister Lecornu has so far dismissed using this mechanism, considering also the risky option of passing the budget through ordinances — a procedure never previously used for this purpose and carrying constitutional risks.

This special law is a familiar tool, having been employed after the fall of the Barnier government and has generally received broad political support as a temporary solution to ensure continuity of the state’s functioning. The Rassemblement National is expected to support this law to avoid administrative disruption. Nonetheless, stakeholders acknowledge that while this measure prevents an immediate crisis, it does not resolve the underlying fiscal disagreements that have stalled the 2026 budget.

The government’s swift actions highlight the urgency to maintain essential public services and provide a functioning state apparatus as negotiations intensify in the coming weeks.