French National Assembly unanimously rejects budget bill

On Wednesday night, France's National Assembly unanimously rejected the 2027 state budget bill, highlighting Prime Minister Sébastien Lecornu's challenges in implementing €43 billion in budget savings. Both supporters and opponents of Prime Minister Emmanuel Macron voted against the first part of the budget, which pertains to tax income.

The document underwent extensive amendments, leading to a proposal that was met with dissatisfaction from all sides. Consequently, the second part of the budget, covering spending, was also rejected. The government's initial budget draft will now be sent to the Senate, which will debate it starting November 20. Previously, the National Assembly had also rejected the other component of the 2027 budget, which addresses state pensions and healthcare.

With France's economy experiencing stagnation, increasing debt, and the looming risk of a financial crisis, Lecornu's administration is facing intense pressure to rectify the nation's financial situation. The government has committed to reducing the deficit, the gap between government expenditures and revenue, to 5% of the gross domestic product by next year.

However, after incorporating the amendments, the version of the budget that was rejected was projected to maintain a deficit of 5.9%. Given Lecornu's lack of a majority in the lower chamber, the rejection was anticipated and raises the likelihood of the government attempting to push the budget through. As the 2027 presidential election looms, the government has repeatedly emphasized its determination to pass the budget by year's end—a goal it could not achieve with the two preceding budgets.

To achieve this, the government could either utilize Article 49.3 of the Constitution, a provision that permits bypassing parliamentary approval but puts it at risk of facing no-confidence motions, or employ executive orders, an unprecedented measure in France's modern political landscape.