French National Assembly Approves Sharp 2026 Budget Cuts Amid Political Maneuvering

On January 14, 2026, the French National Assembly unexpectedly voted to reduce the General Operating Grant (DGF) allocated to local authorities by €4.9 billion, marking a significant funding cut. This measure, introduced by the far-right Rassemblement national (RN), passed by a vote of 77 to 37, defying government opposition. The RN justified the reduction as necessary to streamline the territorial administration by eliminating redundant regional layers and emphasizing intercommunal cooperation, with RN deputy Jean-Philippe Tanguy stating, "5 billion in less spending."

This surprising victory came just a day after the Assembly had voted to increase the DGF by €400 million, indexing it to inflation, highlighting the contentious nature of the budget discussions. The assembly’s failure to secure a clear majority for the finance bill has raised the possibility that Prime Minister Sébastien Lecornu might invoke Article 49.3 of the constitution or utilize ordinances to enforce the budget passage, though his exact intentions remain uncertain.

The budget debate has been marked by political tensions and attempts to destabilize the government. On the same day, the Assembly rejected motions of censure submitted by La France insoumise (LFI) and RN against the government’s support for the EU-Mercosur trade agreement. Lecornu criticized opposition parties as "crouching shooters firing at the back of the executive." The censure motion by LFI garnered 256 votes, and RN's 142 votes, both falling short of the 288 votes needed to topple the government. The Socialist Party, led by Olivier Faure, declined to support the censure motions, opting instead to negotiate the budget with the government.

Ecologist leader Marine Tondelier sharply criticized the Socialists, describing them as a "crutch" for Lecornu’s administration and accusing them of making compromises that do not serve French citizens’ interests. Despite this critique, her party continues to collaborate with the Socialists for upcoming municipal elections and is advocating a left-wing primary ahead of the 2027 presidential race.

As the protracted budget discussions enter their fourth month, France faces uncertainty over the final shape of the 2026 spending plan amid fragile parliamentary alliances and procedural gambits. The government’s possible use of constitutional measures to enforce the budget signals further political turbulence ahead.