France finally approves 2026 budget: Lecornu avoids resignation
Sébastien Lecornu (Photo: EPA / CHRISTOPHE PETIT TESSON)

France, one of Ukraine’s key partners, has approved its 2026 state budget after more than 200 days of parliamentary debate. On Monday, February 2, MPs rejected the last motions of no confidence initiated by far-right and left-wing factions, allowing the finance law to be considered finally adopted, according to Le Monde.

The budget is expected to come into force around February 10, following review by the Constitutional Council.

The law was passed thanks to a compromise with the Socialist Party, which refrained from supporting the no-confidence motions.

Prime Minister Sébastien Lecornu had to invoke Article 49.3 of the French Constitution three times to pass the budget without a parliamentary vote. This was despite his earlier promises not to use this mechanism.

The budget deficit is set at 5% of GDP, up from the initially planned 4.7%. Public debt is expected to rise to 118.2% of GDP, compared with 115.9% in 2025, reports BFM.

The tax burden will increase slightly from 43.6% to 43.9% of GDP, with the main impact on large companies. At the same time, the government emphasizes that, for the first time in years, the growth of public spending in real terms is slowing to 0.9%.

The military budget, considered the government’s top political priority, received the largest increase, with an additional EUR 6.5 billion.

Preparing the 2027 budget promises to be even more challenging. France will need to reduce its deficit to 4.1% of GDP, requiring significant additional measures. The process will take place during the pre-election period, just six months before the presidential election.

Many economists doubt that France will be able to meet its commitments to the European Union and reduce the deficit below 3% of GDP by 2029. At the current rate, the deficit is projected to be 3.8% of GDP in 2029, instead of the targeted 2.8%, according to Senate estimates.

In October, the French Prime Minister announced that pension reform would be postponed until after the 2027 elections.