The new budget includes a $7.6 million increase in military spending and aims to reduce the deficit to 5% by the end of 2026.
Published on February 2, 2026
France adopted a budget for 2026 after two no-confidence motions failed, allowing the legislation to pass and potentially heralding a period of relative stability for Prime Minister Sébastien Lecornu’s weak minority government.
The budget, adopted Monday after four months of political impasse over public spending, includes measures to reduce the French deficit and increase military spending.
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“France finally has a budget,” Lecornu said in a post on X. “A budget that makes clear choices and responds to essential priorities. A budget that contains public spending and does not increase taxes on households and businesses.”
Motions filed by France Insoumise, the Greens and other left-wing groups garnered 260 of the 289 votes needed to overthrow the government. The far-right motion received only 135 votes.
Budget negotiations have consumed France’s political class for nearly two years, after President Emmanuel Macron’s snap elections in 2024 resulted in a hung parliament, just as a massive hole in public finances made belt-tightening more urgent.
Budget negotiations cost two prime ministers their jobs, disrupted debt markets and alarmed France’s European partners.
However, Lecornu – whose chaotic two-stage appointment in October drew derision around the world – managed to win the support of socialist lawmakers through costly but targeted concessions.
Reduce the deficit
France is under pressure from the European Union to rein in its debt-to-GDP ratio – the third highest in the bloc after Greece and Italy – which is close to double the EU’s 60 percent ceiling.
The bill aims to reduce France’s deficit to five percent of gross domestic product (GDP) in 2026, from 5.4 percent in 2025, after the government lowered its previous target of 4.7 percent.
The budget calls for higher taxes on some businesses, expected to raise around 7.3 billion euros ($8.6 billion) in 2026, although the Socialists failed to win support for a proposed wealth tax on the super-rich.
It also increases military spending by 6.5 billion euros ($7.7 million), a measure the prime minister described last week as the “heart” of the budget.
The Socialists, however, obtained several coveted measures, including a one-euro meal for students and an increase in the supplementary payment for low-income workers.
