France adopts 2026 budget after two no-confidence votes fail

New budget includes a $7.6m military spending increase and aims to cut the deficit to 5 percent by the end of 2026.Published On 2 Feb 2026France has passed 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 Sebastien Lecornu’s weak minority government.The budget, adopted on Monday after four months of political deadlock over government spending, includes measures to bring France’s deficit down and boost military spending.Recommended Stories list of 3 itemslist 1 of 3Why Japan’s economic plans are sending jitters through global marketslist 2 of 3Guterres warns UN faces ‘imminent financial collapse’list 3 of 3India’s budget bets on infrastructure, manufacturing amid global trade warend of list“France finally has a budget,” Lecornu said in a post on X. “A budget that makes clear choices and addresses essential priorities. A budget that contains public spending and does not raise taxes for households and businesses.”Motions tabled by France-unbowed" class="entity-link entity-organization" data-entity-id="14519" data-entity-type="organization">France Unbowed, the Greens and other left-wing groups drew 260 of the 289 votes needed to oust the government. The far-right motion secured only 135 votes.The results appear on a giant screen of the first vote on no-confidence motions against the 2026 finance bill [AFP]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.Reducing the deficitFrance 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.