French Prime Minister Sébastien Lecornu has warned that France risks falling into political and economic instability if parliament fails to pass a budget before next year's presidential election.
Speaking in an interview with French news channel LCI, Lecornu stated that he wanted to speak plainly about the urgent need for a financial plan. He said that the absence of a budget, given the upcoming electoral deadlines, would lead to a period of political and financial uncertainty that the country would not know how to manage.
Lecornu made his comments one day after credit rating agency Fitch maintained a stable outlook for France, Europe's second-largest economy. However, Fitch renewed warnings that widening deficits and accumulated debt could trigger a credit rating downgrade. France's rating currently sits six notches above junk status.
French public finances are under increasing pressure amid rising global bond yields and an ongoing domestic political deadlock in Paris.
Budget negotiations in National Assembly
Official negotiations over the budget are scheduled to begin at the end of September, when Lecornu will present the government proposal to parliament.
The prime minister faces a deeply divided National Assembly, the lower house of the French parliament. Over the past two years, lawmakers in the assembly have toppled previous governments over their fiscal plans.
With presidential elections scheduled in eight months, the prospect of upcoming votes further reduces the chances of compromise for Lecornu's minority government.
Lecornu argued that passing a budget remains essential because the upcoming presidential vote provides a safety valve, allowing any incoming administration to modify the fiscal package and make it their own.
He stated that the current government can take corrective financial measures this autumn that are difficult but not drastic. He added that whichever administration takes power next will have no choice but to implement drastic measures.
Opposition parties threaten to withhold support
Political support for the administration remains fragile across the legislature. The French Socialist Party, which played a key role in keeping President Emmanuel Macron's government in power over the last two years, is considering withdrawing its support during negotiations for the 2027 budget.
Opposition from the political right is also mounting. Speaking on Saturday on French broadcaster BFMTV, Jordan Bardella, head of the far-right National Rally, left open the possibility that his party would vote against the budget.
Bardella noted that National Rally leader Marine Le Pen currently leads in opinion polls. He said that if Le Pen is elected president, she has a plan to restore French public finances, cut the deficit, abolish certain taxes, and hold a national referendum to restrict migrant movement.
Lecornu also reiterated during his interview that he will not be a candidate in the upcoming presidential election.
