MNI BRIEF: European Commission Monitoring French Budget Talks

The European Commission said on Wednesday it will carefully monitor the debate on France’s 2026 budget in its National Assembly but that it was too early to draw any conclusions on Prime Minister Sebastien Lecornu’s proposal to delay pension reform.

"The Commission continuously monitors fiscal developments in all member states, including France, as part of our regular surveillance under the Stability and Growth Pact. It's important to note that we are talking about an announcement, so it's not the day yet to draw any conclusions. We will carefully follow this debate in the French parliament and we will be formulating our position on that basis," Commission Spokesperson Balasz Ujvari said. 

In a bid to win approval for the budget from the Socialist Party, Lecornu said on Tuesday that the 2023 pension reform would be suspended until presidential elections in 2027 at a cost of EUR400 million next year and EUR1.8 billion in 2027. (See MNI INTERVIEW: ECB Should Not Ease French Bond Woes - Papadia)