Europe23 December, 20252 min read
French Parliament Unanimously Passes Emergency Law Extending 2025 Budget to Avert January 1 Budget Paralysis
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Parliament unanimously approved a special emergency law to temporarily finance the state. The law extends the 2025 budget while lawmakers finalize the 2026 budget.
7 outlets told this the same way.
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French temporary budget extension
On December 23, France's Parliament unanimously adopted a special temporary law extending 2025 budgetary credits into 2026 to avert budgetary paralysis on January 1 and keep public payments and administration operating until a full 2026 finance law is adopted. Lawmakers in both chambers voted unanimously, with reported counts of 496-0 in the National Assembly and 344-0 in the Senate, allowing immediate promulgation by the President and ensuring tax collection and borrowing continue under 2025 rules. Sources say the measure is a stopgap rather than a substitute for a full budget and describe it as an emergency response to failed negotiations in a joint committee.
“On December 23 the French Parliament unanimously passed a special, temporary law to avoid a budgetary paralysis on January 1. ... Votes were unanimous in both chambers: 496‑0 in the National Assembly and 344‑0 in the Senate, allowing immediate promulgation by the President.”
Temporary budget law update
The parliamentary stopgap followed protracted talks that collapsed in a joint committee, leaving budget debates deferred to January and forcing the government to adopt a temporary law. Officials described the measure as necessary but not satisfactory.
Prime Minister Sébastien Lecornu reiterated the government’s target to reduce the deficit, now aiming for below 5% of GDP by 2026 after earlier plans had targeted 4.7%. The government says the special law is only temporary and that a full finance bill will be resumed in the first weeks of January.
Stopgap fiscal implications
Reporting notes that the stopgap carries over 2025 fiscal rules, allowing continued tax collection and borrowing. Agreed measures so far imply a 2026 deficit near 5.3% of GDP, missing earlier targets.
“Agreed measures so far would leave the 2026 deficit near 5.3% of GDP (vs. 5.4% this year), missing Lecornu’s initial 4.7% target and his later goal of below 5%.”
Le Monde details concrete costs and disruptions attributed to temporary financing, citing a disputed €12 billion hit from the prior special law, frozen defence and energy investments, about 200,000 households moving onto the tax rolls because fiscal scales will not be inflation-indexed, and a projected €6.5 billion revenue loss in 2026. Observers warn that markets and ratings agencies are monitoring the large deficit.
Budget timetable and risks
Looking ahead, sources set out a clear procedural timetable and flag political options and uncertainties.
Idéal Investisseur reports the Assembly finance committee will meet around Jan. 7–8, with public review beginning Jan. 12, followed by Senate debates and a possible final Assembly reading.
The government says it will not use Article 49.3 to force passage.
Luxembourg Times notes the minority government may nonetheless resort to constitutional powers to impose a budget.
It also faces no-confidence threats from both the far right and the hard left.
Le Monde warns that the special law prolongs uncertainty and calls for an urgent exit from the impasse.
Observers say markets and agencies are watching.