"Prime Minister Sébastien Lecornu submitted a "special law" for the state to continue to collect taxes and pay civil servants based on the 2025 budget from January 1st. However, the 'rollover budget' does not allow for new spending, including on defence, a mounting priority in the face of a confrontation with Russia over Ukraine. France's transport minister on Tuesday revealed that he had been forced to cancel orders for new night trains and an upgrade to air traffic control systems, due to the budget stalemate."
"Officials have warned the special law is only a stopgap and that controlling France's deficit requires swift action. President Emmanuel Macron told ministers on Monday the government would need to provide a budget to meet the goal of getting the deficit under five percent of GDP while also funding their priorities as soon as possible in January. Lawmakers will reconvene at the start of the year for fresh sparring over the budget bill, with Lecornu saying that he is "persuaded" that an agreement is possible."
The French lower house and Senate approved a temporary "special law" to let the state keep collecting taxes and pay civil servants from January 1 based on the 2025 budget. The legislature failed to agree a full two-part budget after prolonged divisions following snap elections, leaving only a rollover budget in place. The rollover bars new spending, affecting defence projects and forcing cancellations such as night-train orders and air traffic control upgrades, while government-funded schemes like MaPrimeRenov will stop. Officials call the measure a stopgap and stress the need for a full budget to control the deficit and meet targets.
Read at The Local France
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