French Prime Minister Lecornu Urges Political Compromise to Finalize 2026 Budget

On December 23, 2025, French Prime Minister Sébastien Lecornu expressed optimism about the possibility of adopting the 2026 state budget, provided that political calculations are set aside by all parties. Speaking outside Matignon, Lecornu emphasized that taking the time necessary to construct a solid budget is not a weakness in a democracy like France, despite the political deadlock delaying final approval.

With Parliament failing to reach an agreement on the 2026 finance bill, both the National Assembly and the Senate unanimously adopted a special law as a temporary measure. This special law grants the government authority to collect existing taxes, provide funds to local authorities, and engage in borrowing, but it has drawn criticism from hospital federations over the stagnation of hospital tariffs.

Lecornu underlined the necessity of having an official budget by January and reiterated the government’s target to reduce the national deficit to below 5% of GDP by the end of 2026. Amid pressures within his own party to invoke Article 49.3 to pass the budget without further parliamentary vote, Lecornu called for calm and responsibility among government and parliamentarians alike.

To break the impasse, Lecornu identified five key areas where bipartisan negotiation could foster agreement: agriculture, local communities, housing, overseas territories, and youth. He highlighted the constructive dialogue with the Socialist Party that facilitated the passage of the 2026 Social Security budget but noted that deep divisions between the National Assembly and the Senate, particularly over taxation policies, remain a major hurdle.

The Prime Minister's message stressed the importance of negotiation and compromise rather than unilateral measures, affirming his confidence that a state budget is achievable if political interests are set aside. The special law serves as a stopgap solution, but France’s financial governance hinges on reaching a comprehensive budget agreement soon.