Wed Dec 24 01:10:20 UTC 2025: News Article:
France Averts Government Shutdown with Emergency Budget Bill
Paris – In a move to prevent a U.S.-style government shutdown, France’s fractured parliament has approved an emergency budget bill after negotiations for the 2026 budget collapsed. The bill, passed on December 23rd, ensures the continuation of essential public services, including tax collection and disbursement, by operating on 2025 budget levels.
The approval comes after a late-night meeting of President Emmanuel Macron’s cabinet and amidst deep political divisions. While the National Assembly and Senate approved the measure, significant challenges remain in building a full 2026 budget and avoiding further political crisis.
Finance Minister Roland Lescure likened the bill to “a spare tire,” warning against relying on it for too long and urging swift action on a comprehensive budget to avoid weakening the French economy.
President Macron aims to reduce the nation’s deficit to 5% of GDP and restore investor confidence after political deadlock and snap elections last year. France’s high public spending and heavy tax burden have contributed to the fiscal challenges.
Prime Minister Sébastien Lecornu, who recently returned to office, has appealed to all parties to collaborate on a 2026 budget during the holiday period. The government secured a narrow victory on a healthcare budget earlier this month, but only after suspending Macron’s pension reform.
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