With 458 votes against, none in favor and two abstentions, the French parliament rejected the 2027 draft state budget on Wednesday at its first reading. The rejection deepens the country’s political and financial deadlock, with only a few months to go before the presidential election.
No political party supported the proposal. Lawmakers who back President Emmanuel Macron’s government also voted against it.
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Before the vote, the National Assembly held around ten days of heated debate. The opposition challenged the government’s economic policies, while lawmakers from the governing majority expressed dissatisfaction with the numerous changes made to the original draft.
For the French government, the result is another setback in its efforts to secure the votes it needs in parliament. Winning parliamentary support has become more difficult since 2024, when Macron dissolved the National Assembly, leading to a parliament in which no side holds a clear majority.
Tax changes and spending cuts at the center of the dispute
The government’s original draft aimed to bring the budget deficit down to 5% of gross domestic product by 2027, compared with the 5.4% projected for this year. Lawmakers’ amendments, however, have made that target harder to achieve.
During its passage through parliament, the government’s draft underwent substantial changes, and several key measures intended to cut spending were removed. Provisions to end tax breaks for pensioners and organizations were also dropped, as was a proposal to raise taxes on large companies.
Budget Minister David Amiel has warned that reducing spending in France requires measures more extensive than those in the original draft, which aimed to save 43 billion euros.
Concerns also extend to the state of the economy. The French economy contracted by 0.1% in the third quarter. Government borrowing costs have also risen sharply in recent weeks amid uncertainty over the sustainability of public debt and political and social instability.
Senate review and the search for a deal
Following its rejection by the National Assembly, the original version of the draft budget will be sent to the Senate. Its review there is expected to resume on November 20.
Prime Minister Sébastien Lecornu’s office has said talks on a compromise will take place at a later stage. It remains possible, therefore, that the government and the Senate could move closer to an agreement in December.
Possibility of approval through executive powers
Lawmakers are also concerned about another course the government could take: using executive powers to approve the budget without a parliamentary vote.
Political discussions have raised the possibility that, from December 18, the government could approve the draft budget by executive decree. Such a move would bypass a vote in the National Assembly.
That prospect has led some lawmakers to suspect the government is deliberately delaying negotiations until it can use this mechanism. Amid political divisions and concerns over public debt, securing approval for the 2027 budget remains one of the French government’s main challenges.
