French PM Lecornu updates 2026 budget with pension, worker, and student support amid parliamentary deadlock.
French Prime Minister Sebastien Lecornu unveiled amendments to his draft 2026 budget on Friday 16 January 2026, aiming to secure support from the Socialist Party by raising income supplement benefit for low‑income workers, students, and pensioners.
After three months of unsuccessful parliamentary negotiations, Lecornu had previously indicated he might bypass parliament to pass the budget. However, he reiterated his commitment to seeking a compromise with other parties, saying the government “will continue to work with the parliamentary groups that have the courage to put the general interest above their partisan interests.”
Key measures in the revised draft include maintaining the tax rebate on pensions, increasing a monthly income supplement for low‑income workers by around EUR 50 for roughly three million households, extending cheap university meals, and supporting affordable housing. Lecornu said the budget deficit would not exceed 5% of GDP and could be lower.
Budget talks in parliament are paused until Tuesday. If negotiations fail, Lecornu could invoke Article 49.3 of the Constitution to pass the budget without a vote, risking a no-confidence motion, or potentially use Article 47, an untested executive route, to adopt the budget independently of parliamentary approval.
The government faces scrutiny from investors and ratings agencies due to France’s eurozone‑high fiscal deficit. Political instability has persisted since President Emmanuel Macron lost his parliamentary majority in 2022, worsened by the hung parliament from early 2024 elections.
Earlier, France’s government published Law No. 2025-1316 of 26 December 2025 in the Official Gazette on 27 December 2025.
