French PM Pushes Stopgap Budget Law to Avoid Shutdown

France’s government is moving quickly to pass a stopgap budget law as political deadlock threatens to leave the country without an approved spending framework at the start of the new year.

The French prime minister has asked parliament to back an emergency rollover bill after lawmakers failed to reach agreement on a full-year budget, raising the risk of a partial government shutdown.

The crisis follows weeks of negotiations in a deeply divided National Assembly, where rival political blocs were unable to bridge differences on spending priorities, taxation and deficit reduction.

A joint parliamentary committee tasked with finding a compromise collapsed without a deal, leaving the minority government without the votes needed to pass a complete budget before year-end.

• French government seeks stopgap budget law to avert shutdown risk
• France faces budget deadlock as parliament fails to pass full-year plan
• Minority government pushes emergency spending rollover amid fiscal concerns

Without swift action, ministries would be unable to commit new spending, collect certain taxes or borrow on financial markets. To prevent disruption to public services, salaries and social payments, the government has opted for a temporary measure that would extend current budget rules into January, buying time for renewed negotiations.

The prime minister has begun consultations with parliamentary leaders across the political spectrum, though talks exclude parties seen as unwilling to support any interim solution. The cabinet is expected to approve the stopgap bill imminently, with lawmakers set to debate and vote on it within days. Government officials are confident the limited scope of the measure will secure enough backing to pass.

The budget impasse has heightened concerns among investors, as France already runs one of the largest fiscal deficits in the euro zone. Ratings agencies have warned that prolonged political instability could complicate efforts to rein in public finances.

Officials insist the emergency law is not a substitute for a full budget. Negotiations on a comprehensive spending plan are expected to resume in January, with the aim of securing parliamentary approval early in the new year. Similar rollover legislation was used previously, but finance ministry officials say delays come at a cost, increasing borrowing needs and uncertainty for public bodies.

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The episode underlines the challenges facing a government operating without a clear majority, where even routine budget legislation has become a test of political survival