Fiscal Policy

France: budget approved, Lecornu survives censorship

The 2026 budget envisages a 5% deficit. The external support of the socialists is crucial, boosted by various social measures

by Riccardo Sorrentino

Il primo ministro francese Sébastien Lecornu durante il dibattito sulle due mozioni di fiducia respinte dall’Assemblée nationale, il 2 febbraio 2026. REUTERS/Benoit Tessier

3' min read

Translated by AI
Versione italiana

3' min read

Translated by AI
Versione italiana

The French budget has been passed. Sébastien Lecornu's government has survived even the last two censure motions and the 'state' budget law, which excludes the Sécurité sociale part already approved on 16 December, is considered adopted. Yesterday, in the Assemblée nationale, the motion presented by the left of France Insoumise and the ecologists gathered, thanks to the convergence of the radical right, 260 votes, against a quorum of 289: a result not far from the previous censure votes of 23 January (269 votes) and 27 January (267 votes). The motion tabled by the right then received only 135 votes (142 on 23rd, 140 on 27th January).

"It is time to move on and let France have a budget," the prime minister said at the end of the preliminary debate. After the necessary preventive passage at the Conseil Constitutionnel, the law can be enacted by President Emmanuel Macron in a rather tight timeframe.

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Overcoming uncertainty

Lecornu therefore succeeded in the not easy task of getting the budget approved. The path was bumpy, the government had to resort to the provisional financial year. The fragmentation of the Assemblée did not, however, suggest anything else. Even the 2025 budget, after the censure vote that brought down Michel Barnier's government on 4 December 2024, was only approved on 6 February (and that of the Sécurité Sociale on 17 February) while François Bayrou was prime minister. Bayrou himself, starting the process for the approval of the two budget laws, chose to undergo a preliminary censure vote on 8 September 2025 that led to the fall of his government.

Lecornu's strategy

Lecornu's strategy succeeded in overcoming the constraints posed by the political situation, starting with the tight timeframe. He immediately swept away two major obstacles: he pledged not to use Article 49.3 of the Constitution, which allows the budget to be passed without a parliamentary vote, and he proposed to the left - and especially to the socialists - to freeze the raising of the legal retirement age (a 'reference' level, somewhat different from the Italian retirement age), until the 2027 presidential elections.

He then shifted the task of building a majority on individual measures to Parliament, making the government take a step to the side. In this way he first of all alleviated the political pressure against President Emmanuel Macron. Calls for his resignation were focused on him, which would have opened up a phase of structural uncertainty: the institutional dynamic would have made the head of state accountable to Parliament - and the French regime is constructed in a decidedly different way - and, if accepted, would have forced the French to vote after a very fast election campaign, the timing of which is dictated by the Constitution. Lecornu then gained the external support of the socialists who, after having obtained the suspension of the pension reform, renounced the prime minister's other concession: the pledge not to use Article 49.3, which was instead decisive.

The choices of the socialists

To do otherwise would have had a potentially high political cost for the SPS. The 2026 budget, while reducing the deficit to 5% - still a high level by European standards, but in line with French commitments - contains some measures that try to take into account the demands of the moderate left. It is a 'budget that takes up all the socialist ingredients that led to France's decline,' said Bruno Retailleau, the president of the Républicains, who also refrained from voting for the censure.

The reference is mainly to the revaluation, to the tune of two billion, of the bonus (prime) for lower paid workers, university meals at one euro, doubling the revenue from the surtax on the profits of large companies, which could yield up to 8 billion euro, and measures on the housing front. The external support of the Ps, however, keeps open those tensions between the party and the other left-wing parties, especially with the presidential elections approaching, which will now have to be defused. "This budget will not be ours," said Socialist MP Hervé Saulignac, "It will be more or less nobody's budget and it is precisely because it is nobody's that it will be everybody's.

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