France Passes Controversial Budget Amid Political Turmoil

France has enacted its budget for 2024 following a tumultuous period where the minority government weathered a string of no-confidence votes, highlighting the instability in the nation's political landscape. Prime Minister Sébastien Lecornu addressed parliament on Monday, emphasizing the public's desire for functionality within government institutions after a protracted struggle that unsettled financial markets and alarmed European partners. The budget was approved through special constitutional powers, which allowed it to bypass a parliamentary vote. Lecornu's government faced multiple no-confidence motions, ultimately surviving the last two votes late Monday evening. The passing of the budget was facilitated by an agreement with the Socialist party, which chose not to oppose the government in exchange for certain concessions, notably the suspension of President Macron's controversial pension reforms aimed at gradually raising the retirement age from 62 to 64. Hervé Saulignac, a Socialist MP, stated that his party acted responsibly in preventing further chaos, highlighting the risks of leaving France without a budget, which would only compound the hardships faced by the population. Described by Lecornu as a breakthrough, the budget allocates an additional €6.5 billion to defense spending. Despite skepticism from some legislators, the government's target is to reduce the national deficit to 5% of the gross domestic product (GDP) by 2026, a decrease from the projected 5.4% in 2025. However, right-wing rapporteur Philippe Juvin noted that scrapping the pension reforms compromised this reduction. Negotiations surrounding the budget have absorbed the French political class for nearly two years. This turmoil dates back to the snap elections called by President Emmanuel Macron in June 2024, which resulted in a hung parliament. A left coalition captured the most seats, though it fell short of a majority. Meanwhile, the far-right National Rally gained significant support without achieving a dominant position. Macron's centrist party saw a reduction in its representation, yet remains influential. The political gridlock that has plagued France stems from the fragmented nature of its parliament. Macron's initial choice for the prime minister position, right-wing Michel Barnier, was ousted three months later following disputes regarding the 2025 budget. His subsequent appointment, centrist François Bayrou, lasted only nine months before succumbing to similar challenges over the 2026 budget. Lecornu, a key ally of Macron, was appointed last autumn, temporarily resigned, and was reappointed in a bid to secure a budget passage. Lecornu's aspirations are focused on maintaining his position until 2027 while navigating beyond the budgetary issues to address critical domestic policies, including laws to protect farmers and enhance assisted dying and palliative care. However, ongoing deadlock in parliament has severely limited the government's capacity to implement any meaningful reforms. As municipal elections are set to take place next month, the upcoming presidential election in spring 2027 is also becoming a focal point for national politics. Macron, barred from seeking a third consecutive term after two terms in office, has shifted his attention predominantly to foreign policy, advocating for European autonomy from global powers and a more assertive stance in negotiations with the United States regarding tariffs and other geopolitical issues. Meanwhile, far-right leader Marine Le Pen—seen as a possible contender for the 2027 presidency—is embroiled in legal battles regarding her conviction for embezzling European parliament funds through an alleged fraudulent jobs scheme. She is appealing her previous guilty verdict, which resulted in a five-year ban from holding public office, as she vies for a chance to overturn her conviction ahead of the crucial election. Related Sources: • Source 1 • Source 2