France's 2026 budget approved amid political chaos

In early February, according to Jin10, the French Parliament finally approved the 2026 budget plan after a prolonged political battle. Prime Minister Le Corny demonstrated determination by overcoming two consecutive votes of no confidence, alleviating concerns within the international economic community about France’s economic situation. This development marks the end of months of political instability, as members from far-left and far-right parties attempted to overthrow the government.

Prime Minister Le Corny Overcomes Two Votes of No Confidence

The first vote from far-left members only received 260 votes, falling short of the 289 votes needed to oust the minority government. Subsequently, a second vote from the far-right faction garnered only 135 votes, also failing to break the current political coalition. These results show that despite deep divisions in Parliament, there was not enough support to change the national budget decision.

Political Concessions and Adjusted Budget Structure

To achieve this victory, the government had to make several strategic concessions. The plan included cutting public spending and raising taxes less than previous versions, leading to an expected budget deficit of 5%, exceeding initial expectations. Although this figure is higher than initially projected, it represents a balance among various political pressures.

Political Stability as a Foundation for Economic Recovery

Prime Minister Le Corny’s success in maintaining the government and defending the budget plan is a significant step. He avoided the fate of predecessors who were forced to resign due to disagreements with Parliament over austerity measures. With the approval of the 2026 budget amidst political chaos, France now has an opportunity to stabilize the situation and restore investor confidence in the national economy.