Key insights
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1
Article 49.3 remained an option for the 2026 budget: A French government source said Lecornu could invoke Article 49.3 to push through the finance bill without a vote after negotiating a text with all groups except RN and LFI.
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2
Mainstream parties declined to censure the government over MERCOSUR: The Socialist Party ruled out backing the no-confidence motions, and the conservative Republicans said they would not vote to censure the government over MERCOSUR.
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3
Political instability continued to complicate deficit reduction: France faced pressure to reduce its budget deficit, and political instability since the 2024 snap election slowed those efforts; budget disputes toppled three governments since that election.
Takeaways
The government remained in place and moved toward renewed 2026 budget negotiations while facing continued political tensions over MERCOSUR and deficit reduction.
Topics
Business & Markets Economy World & Politics Elections Policy & Regulation Governance Trade & Tariffs