"Budget negotiations have consumed the French political class for nearly two years, after President Emmanuel Macron's 2024 snap election delivered a hung parliament just as a massive hole in public finances made belt-tightening more urgent. The budget talks have cost two prime ministers their jobs, unsettled debt markets and alarmed France's European partners. However, Lecornu whose chaotic two-stage nomination in October drew derision around the world managed to secure the support of Socialist lawmakers through costly but targeted concessions."
"France is under pressure from the European Union to rein in its debt-to-GDP ratio the bloc's third-highest after Greece and Italy which is close to twice the EU's 60-percent ceiling. The bill aims to cut France's deficit to five percent of gross domestic product (GDP) in 2026 from 5.4 percent in 2025, after the government eased back from an earlier target of 4.7 percent."
France passed a 2026 budget after two no-confidence motions failed, giving breathing room to Prime Minister Sebastien Lecornu's weak minority government. The budget includes a $7.6m increase in military spending and measures intended to cut the deficit to five percent of GDP by the end of 2026, down from 5.4 percent in 2025. The government abandoned an earlier 4.7 percent target and secured Socialist support through costly but targeted concessions. Budget negotiations consumed the political class for nearly two years, cost two prime ministers their jobs, unsettled debt markets and alarmed European partners. The government pledged to contain public spending without raising taxes on households or businesses.
Read at www.aljazeera.com
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