France Overcomes Political Crisis: Parliament Approves 2026 Budget

A prolonged period of political instability in France has finally come to an end. On February 3rd, the country’s parliament approved the budget plan for the upcoming year, marking the end of months of uncertainty and turmoil in the financial markets. This outcome was the result of intense political confrontation that nearly led to the fall of Prime Minister Le Cornu’s government.

Le Cornu Maintains Power: Parliament Rejects No-Confidence Motions

The decisive moment came when parliament considered two no-confidence motions submitted by opposing political factions. The left-wing parties proposed the first motion, which received support from 260 deputies. However, this number was insufficient — a minimum of 289 votes was required to oust the government. The second attempt came from the far-right parties, which proposed an alternative resolution that garnered only 135 votes.

Thus, parliament twice rejected attempts to overthrow the cabinet. Le Cornu and his team achieved this victory through a series of compromises with various parliamentary groups. These agreements included reducing expenditures and increasing tax revenues compared to the initial proposals.

Compromises and Concessions: How Parliament Agreed on the New Budget

The budget concept adopted by parliament reflects the need to balance different political interests. Despite the compromises reached, the projected government deficit will be 5%, exceeding the initially planned figure. This means that even after concessions, the French state was unable to achieve the same level of austerity required in the original draft.

Le Cornu’s success in parliament came at a high political cost, but he avoided the fate of his predecessors, who were forced to resign after conflicts with lawmakers over budget policies.

Victory Over Political Instability: Restoring Investor Confidence

The approval of the budget by parliament marked a turning point for the French economy and investment climate. For many months, political uncertainty undermined market participants’ confidence in the country’s financial stability. Now that parliament has finally approved the budget document, there is an opportunity to restore economic confidence.

This result demonstrates that even in a fragmented parliament with conflicting political interests, compromise and necessary decision-making are possible. Restoring political stability through parliamentary activity is a step that can contribute to economic recovery and strengthen France’s position in the European financial arena.