In a crucial political move, French lawmakers have passed a key social security budget for 2026, a decision that includes the suspension of a highly contentious pension reform. This development comes as Prime Minister Sebastien Lecornu works against the clock to finalise the nation's full spending plan before the year concludes.
A Narrow Victory in the National Assembly
The National Assembly approved the measure on Tuesday by a tight margin of 247 votes to 232. This vote marks the first of two critical budget bills that must be passed to meet the December 31 deadline. The approved version of the bill notably includes the suspension of the 2023 reform that aimed to raise the state pension age from 62 to 64.
This concession was pivotal in securing the support of the Socialist party, a key swing group in the fractured parliament. The suspension of the pension age hike represents a significant political compromise, addressing one of the most unpopular policies that sparked massive nationwide protests last year.
Pressure to Finalise Spending Amid Political Deadlock
France, as the eurozone's second-largest economy, faces intense pressure from European Union partners to control its budget deficit and manage its soaring public debt. However, these fiscal efforts have been consistently hampered by a deep political deadlock following elections that left no party with an absolute majority.
Prime Minister Sebastien Lecornu, who is the country's third prime minister in just over a year, has staked his position on successfully navigating a budget through parliament. His two immediate predecessors were ousted by the legislature precisely over disputes on cost-cutting measures. Lecornu himself narrowly survived a no-confidence vote in October.
A notable aspect of Tuesday's vote is that it was conducted without the government invoking Article 49.3 of the constitution, a controversial clause that allows the executive to force legislation through without a parliamentary vote. This marks the first budget adopted without using this power since 2022.
Next Steps and Potential Roadblocks
The political focus now shifts to the draft state budget bill, with negotiations between the National Assembly and the Senate set to begin. Lawmakers are under mounting pressure to reach an agreement. Should a joint committee of MPs and senators find common ground, the budget would return to the lower house for a final vote.
However, the path remains fraught. The Socialists have indicated they would not support the broader state budget but might abstain, while the Ecologists party has pledged to vote against it. If the two chambers fail to agree on a final budget bill by December 31, the government has the option to temporarily extend the current year's budget provisions.
This gridlock is a familiar scenario in recent French politics. The adoption of the 2025 budget was also significantly delayed, with a spending plan only approved in February after then-Prime Minister Francois Bayrou was forced to use constitutional powers to push it through the lower house.
The successful passage of this initial social security budget provides a fragile foundation for Prime Minister Lecornu's government. Yet, the coming days will be a critical test of whether France's political factions can collaborate to pass a complete budget and avoid a protracted financial impasse as the new year begins.
