French National Assembly Rejects 2026 Budget Revenue, Special Law Proposed to Maintain Public Finances

In a historic vote, the French National Assembly overwhelmingly rejected the revenue section of the 2026 state budget, casting serious uncertainty over the government's financial plans for the coming year. The vote, held on November 21-22, ended with 404 deputies opposing the proposal, one in favor, and 84 abstentions, effectively nullifying the entire budget without even examining the expenses portion. This unprecedented rejection marks a significant parliamentary challenge to the government's efforts to reduce the deficit from 5.4% to 4.7% of GDP as outlined in the initial budget.

Following the rejection, Éric Coquerel, a deputy from La France Insoumise, indicated that the government is most likely to pursue a "special law" to temporarily manage public finances. This special law would allow the provisional extension of the 2025 budget, ensuring the state’s ability to continue collecting taxes while negotiations continue. Coquerel highlighted that the government might adapt last year’s budget to current conditions as an interim measure, reflecting the urgency of maintaining financial continuity as the government seeks an agreement early next year.

With over 120 hours of parliamentary examination and nearly 2,500 amendments discussed during the budget review, tensions remain high among political factions dissatisfied with the proposed measures. The rejected budget will now be forwarded to the Senate for further consideration, with Parliament facing a deadline of December 23 to finalize the budget law. The dismissal of deputies' amendments may lead to renewed political disputes as these proposals are expected to resurface.

This situation places France in an unusual financial position, as the government must quickly implement an alternative legal framework to uphold public finances while navigating the political obstacles that led to this historic rejection.