French budget negotiations have led to the resignation of a third prime minister in under a year, just days before the government was set to present its 2026 budget. This situation creates a crisis likely to disrupt the budget process and may require emergency legislation to keep the government functioning. According to French law, the budget bill must be delivered by October 7, though there is some constitutional flexibility.
With limited time to appoint a new prime minister and cabinet, it seems doubtful that President Emmanuel Macron’s administration will meet the deadline. If the budget is not ready, lawmakers will need to pass emergency laws to authorize spending, taxation, and borrowing from January 1 until a full budget is approved. This is similar to actions taken last December after the previous government’s budget proposal was invalidated.
While emergency measures would avoid a complete government shutdown, they impose strict limits on finances. Spending increases would be limited to previous levels, and taxes could not be adjusted for inflation. Additionally, there could be significant costs due to pension adjustments. If Macron chooses to dissolve parliament and call early elections, the timeline for passing emergency legislation could become extremely tight.
