Khaberni - On Tuesday, French lawmakers approved emergency legislation aimed at ensuring the continuation of government operations until January pending the approval of a suitable budget for 2026 by the severely divided parliament.
Prime Minister Sebastien Lecornu rushed to present the legislation late on Monday after lawmakers from the National Assembly (House of Representatives) and the Senate were unable to agree on a consensus text for the 2026 budget on Friday, due to disputes over spending cuts and tax increases.
The law, which was unanimously approved by parliament, allows the state to extend the 2025 spending limits into the new year and to collect taxes and issue debt.
Lecornu said in his speech to the nation on the evening prior to the Senate's approval, "It will allow us (the legislation) to collect taxes and operate public services starting from the first of January."
Investors and credit rating agencies are scrutinizing French public finances, as Lecornu strives to control a budget deficit that reached 5.4% of the gross domestic product this year, the highest in the 20-country Eurozone.
Lecornu's government, with a slim majority, has only a narrow margin of maneuver in the divided parliament, where budget disputes have toppled three governments since President Emmanuel Macron lost the majority in early elections in 2024.
Lecornu stated that he would now focus with the government and various political parties on negotiating a full budget for the coming year with a budget deficit below 5% of the GDP.
France resorted to emergency legislation last year to extend the budget until the full 2025 budget was approved in February.
The government says it cost 12 billion euros (14 billion dollars).
