With a looming shutdown on the horizon, France’s fractured parliament has approved an emergency bill designed to keep the government running into the new year. The measure was introduced after last week’s failed negotiations over a 2026 budget, which left lawmakers scrambling to avoid a U.S.-style shutdown next week.
Drafting the Emergency Bill
On Monday night, President Emmanuel Macron and his Cabinet convened to present a brief draft of the law. The proposal aims “to ensure the continuity of national life and the functioning of public services,” according to the Cabinet. It includes mechanisms for collecting taxes and disbursing them to local authorities based on tax and spending levels in the 2025 budget.
Parliamentary Debate and Amendments
The National Assembly, France’s powerful lower house, debated the draft and made several amendments before voting to approve the bill on Tuesday evening. The Senate followed suit later that day. The passage was notable because it survived deep divisions among the assembly’s three main camps: Marine Le Pen’s far-right National Rally, left-wing forces, and Macron’s centrist minority government.
The Road Ahead: 2026 Budget and Political Stability
While the emergency law provides a temporary safety net, lawmakers recognize that the real challenge lies ahead. Finance Minister Roland Lescure described the law as “like a spare tire,” urging lawmakers to work quickly on a real budget for the next year. He warned that relying on the emergency measure for too long “risks greatly weakening the French economy.” The next step will be harder: building a real budget for 2026 and averting a new political crisis.
Macron’s administration is under pressure to reduce the huge deficit to 5 % of economic output, or GDP, and to restore investor confidence after years of political deadlock and turmoil. The turmoil was intensified by Macron’s ill-fated decision to call snap elections last year.
France’s high public spending-driven by generous social welfare programs, health care, and education-combined with a heavy tax burden that falls short of covering costs, adds to the urgency of finding a sustainable fiscal plan.
Prime Minister Lecornu’s Call for Compromise
Prime Minister Sébastien Lecornu, who resigned and was reappointed this fall, appealed on Tuesday to all parties to work through the holidays to find compromises on a 2026 budget after a previous effort crashed last week. Lecornu’s minority government secured relief earlier this month when parliament narrowly approved a key health care budget bill. However, that approval came at the cost of suspending Macron’s flagship pension reform, which aimed to raise the retirement age from 62 to 64.
Key Takeaways
- France’s parliament has passed an emergency bill to prevent a shutdown next week.
- The law focuses on tax collection and local disbursement based on the 2025 budget.
- The emergency measure is seen as a temporary fix while a full 2026 budget remains unresolved.
The passage of the emergency law is a critical, albeit temporary, step in France’s ongoing effort to maintain governmental stability and address fiscal challenges. The focus now shifts to crafting a comprehensive budget that will secure France’s economic future and satisfy the diverse political factions within its parliament.
