French Parliament Rejects 2027 Budget Amid National Protests
Lawmakers blocked the government's austerity plan as the country faces nationwide strikes and fiscal instability.
The French National Assembly unanimously rejected the 2027 budget proposal presented by Prime Minister Sebastien Lecornu's government. The plan aimed to reduce the public deficit through spending cuts estimated at 54 billion euros.
The lack of a consolidated parliamentary majority makes it difficult to pass fiscal measures in the country. The government faces mounting pressure from creditors due to the state of French public finances.
The country's deficit reached 5.1% of Gross Domestic Product in 2025. National debt hit 115.6% of GDP during the same period, sparking concerns in the government bond market.
The political instability is worsened by national protests and strikes taking over French streets. Demonstrations that began in September over educational issues have evolved into unrest that caused damages exceeding 1 billion euros.
The government mobilized 70,000 police officers to contain potential violence during the walkouts. Uncertainty regarding governance and fiscal policy remains a central focus for global investors.
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