Lecornu's Budget Challenge: Racing Against Time

In a dramatic political return, French Prime Minister Sebastien Lecornu faces a formidable task: presenting a budget bill for 2026 by Monday. The bill's timely submission is crucial to allow for parliamentary debate and approval before the year ends, amidst a politically fraught environment.

Lecornu's challenges extend beyond timing. He aims to reduce the budget deficit significantly, pushing for measures to limit tax optimization strategies among the wealthy, while avoiding a wealth tax increase. His draft budget aligns with fiscal requirements, having been reviewed by the Haut Conseil des Finances Publiques ahead of this week's deadline.

The stakes are high as Lecornu might confront a no-confidence vote if he attempts to bypass parliament using constitutional powers. With lawmaker tensions simmering, there is a fear his government could exploit procedural failures to adopt the budget by decree, as seen last December under different leadership.

(With inputs from agencies.)