The final approval of the 2026 budget by the French Parliament on February 3rd marks a breakthrough after months of political turbulence that significantly undermined investor confidence in the French economy. Prime Minister Le Corny successfully conducted two votes of no confidence, achieving victory and securing the proposed financial plan. The motion of no confidence submitted by left-wing parliamentarians received 260 votes, while 289 votes were needed to oust the minority government. At the same time, a proposal from far-right deputies garnered only 135 votes and also failed to gain the support necessary to push through the change.



To avoid a political deadlock, Le Corny's government had to make several significant compromises. The negotiated concessions led to the easing of originally planned spending cuts and the implementation of more moderate tax increases than previously proposed. As a result, this year's budget deficit will rise to 5%, exceeding initial forecasts. Although this outcome responds to political pressures, it makes French finances vulnerable to further discussions on balancing expenditures in the future. Avoiding the crises that forced his predecessors to resign due to conflicts with Parliament over austerity measures, the Prime Minister is strengthening his position, albeit at the cost of budget liberalization.
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