The negotiations in the French Parliament for the 2026 budget have ended without result. The government may issue an emergency ordinance to continue spending.

The negotiations within the joint committee of the French Parliament were quick and without result, concluding in less than an hour. Prime Minister Sebastien Lecornu announced that he would begin consultations with political leaders to explore possible scenarios, emphasizing that the Parliament would not be able to vote on a complete budget this year. Following this failure, the Government could issue an emergency ordinance to allow for continued spending and tax collection until 2026.

The Governor of the Central Bank of France, François Villeroy de Galhau, warned that such a solution is temporary. France is facing a budget deficit of 5.4%, the highest in the eurozone, and Lecornu has abandoned the initial target of 4.7% to gain the support of the socialists. The Senate approved a budget draft with a deficit of 5.3%, in a context where conservatives blocked tax increases. Budget negotiations have been difficult, and parliamentary arithmetic has led to the fall of three governments after the early elections in June 2024.