France passes 2026 budget despite two consecutive no-confidence votes

France Passes 2026 Budget Amid Two Failed No-Confidence Motions

A new budget has been adopted by France’s government, marking the end of four months of political deadlock over government spending. The legislation, which includes a $7.6 million increase in military spending and aims to reduce the deficit to 5% by the end of 2026, was passed after two no-confidence motions failed to oust Prime Minister Sebastien Lecornu’s minority government.

The budget, adopted on Monday, includes measures to bring France’s deficit down and boost military spending. The legislation also includes higher taxes on some businesses, expected to generate approximately $8.6 billion in revenue for the country in 2026.

Lecornu announced the passing of the budget on social media, stating that it contains “clear choices” and addresses essential priorities. The budget negotiations have been ongoing since President Emmanuel Macron’s 2024 snap election, which resulted in a hung parliament and increased pressure to address public finances.

The European Union has urged France to reduce its debt-to-GDP ratio, which is currently close to twice the EU’s 60% ceiling. The new budget aims to achieve this goal by reducing the deficit to 5% of gross domestic product (GDP) in 2026.

Key provisions of the budget include a boost in military spending and several measures aimed at supporting low-income workers, such as an increase in a top-up payment for low-income workers.

Source: Al Jazeera