The new budget includes a $7.6 million increase in military spending and aims to cut the deficit to 5% by the end of 2026.
Published February 2, 2026
France has passed a 2026 budget after two no-confidence motions failed, allowing the bill to pass and potentially ushering in a period of relative stability for Prime Minister Sébastien Lecorne’s weak minority government.
The budget, adopted on Monday after four months of political deadlock over government spending, includes steps to reduce France’s budget deficit and increase military spending.
Recommended stories
list of 3 itemsend of list
“France has finally come up with a budget, one that makes clear choices and addresses key priorities. It includes public spending and does not increase taxes on households or businesses,” Lecorne wrote in a post on X.
A motion put forward by France Fortitude, the Green Party and other left-wing groups received 260 of the 289 votes needed to overthrow the government. The far-right motion received just 135 votes.
Budget negotiations have consumed French politics for nearly two years, as President Emmanuel Macron’s snap elections in 2024 left the parliament dysfunctional, leaving a massive hole in the public finances and making austerity more urgent.
Budget talks cost two prime ministers their jobs, destabilized debt markets and alarmed France’s European partners.
But Lecorne, whose chaotic two-stage nomination in October drew ridicule around the world, has managed to secure the support of Socialist MPs through costly but targeted concessions.
deficit reduction
France is under pressure from the European Union to rein in its debt-to-GDP ratio, the third highest in the region after Greece and Italy, and nearly double the EU’s 60% ceiling.
The bill aims to reduce France’s budget deficit from 5.4% of gross domestic product (GDP) in 2025 to 5% of gross domestic product (GDP) in 2026, after the government eased it from its previous target of 4.7%.
The budget includes tax increases on some companies, expected to raise around 7.3 billion euros ($8.6 billion) in 2026, but the Socialist Party has failed to secure support for a wealth tax on the ultra-rich.
Military spending will also be increased by 6.5 billion euros ($7.7 million), which the prime minister last week described as the “heart” of the budget.
However, the Socialist Party won some long-awaited measures, including €1 meals for students and increased top-up payments for low-income workers.
