French Parliament Fails to Reach 2025 Budget Agreement, Government Plans Special Law

The French government's attempt to finalize the 2025 state budget faced a significant setback as the mixed commission composed of deputies and senators failed to reach an agreement. The seven deputies and seven senators met on the morning of December 19, 2025, to discuss the finance bill (PLF), but irreconcilable differences, primarily between the two Chambers, prevented a compromise.

Prime Minister Sébastien Lecornu officially acknowledged this impasse during discussions held in the National Assembly. He expressed disappointment about the lack of willingness among some parliamentarians to find common ground. The debate featured deep divisions, notably over the Socialist Party’s demands for increased taxes on high incomes and a surtax on large corporations—proposals opposed by the Republicans.

Given the breakdown in talks, the government will proceed by submitting a special law designed to extend the previous year's budget and ensure fiscal continuity, thereby averting a potential government shutdown. A ministerial council is expected to convene over the weekend to prepare the necessary legislation. Lecornu also announced plans to consult political leaders beginning Monday to strategize how best to protect citizens and uphold government functions during this budget impasse.

This development follows the recent definitive adoption of the Social Security financing bill (PLFSS) earlier in the week, but the failure to approve the overall state budget highlights ongoing tensions within the French parliament. The special law approach is now the government's immediate response to maintain state operations and tax collection without interruption.