French government survives first no-confidence vote in parliament - vote count

French government survives first no-confidence vote in parliament - vote count

French Government Survives First No-Confidence Vote on 2026 Budget

The French government narrowly survived a no-confidence vote in parliament on January 27, 2026, as it pushed forward with its contentious 2026 budget. The motion, led by the hard-left France Unbowed (LFI) party, garnered 267 votes—19 short of the 289 required to topple the government. This outcome followed earlier challenges to the budget's income portion, which also failed to secure sufficient support.

The 2026 budget, finalized after months of political deadlock, aims to reduce France's deficit to 5% of GDP from 5.4% in 2025, aligning with European Union (EU) pressure to curb public debt, which is projected to reach 118.2% of GDP by 2026. Key measures include increased taxes on businesses ($7.3 billion in revenue) and a 6.5 billion euro boost to military spending. To secure support, Prime Minister Sébastien Lecornu made concessions to the Socialists, including suspending controversial pension reforms and introducing a one-euro meal for students.

The government's use of Article 49.3 of the French Constitution—allowing legislation to bypass parliamentary votes—triggered the no-confidence motions. While Lecornu's minority government lacks a majority in the National Assembly, strategic alliances have stabilized the budget process. However, challenges persist: the EU's excessive deficit procedure requires France to bring its deficit below 3% of GDP by 2029, a target that remains uncertain amid political fragmentation.

The budget's passage reflects France's broader fiscal and political struggles. With a hung parliament and repeated no-confidence votes, the government's reliance on tactical compromises underscores the fragility of its position. Investors will closely monitor how these dynamics affect economic reforms, debt sustainability, and France's compliance with EU fiscal rules.

Al Jazeera, : Al Jazeera, France adopts 2026 budget after two no-confidence votes fail
Reuters, : Reuters, French government survives first no-confidence vote on expenditure part of 2026 budget
Politico, : Politico, French government survives no-confidence votes over budget