MNI: Prospects For French 2026 Budget Deal Bleak-Gov't Sources

French Prime Minister Sebastien Lecornu is expected to announce a new minority government over the coming weekend, but the prospects for agreeing a 2026 budget with chances of approval by the Oct 13 deadline are bleak, government sources said.

“There is no time to get a deal between now and then,” one source said. “The government needs to do something - either taxing the rich or a deal on pensions.”

The new government, like the last one, will include neither the Socialists nor the hard-right National Rally, and officials said it was difficult to envisage a budget which would gain sufficient votes in parliament and which would still meet Lecornu’s commitment of a budget deficit of only 4.7% of GDP, which is already higher than the previous government’s hoped-for 4.6%. (See MNI: French Austerity Plan To Largely Survive Crisis-Officials )

“That is well within the European commitments, but the mood music needs to be different to satisfy the opposition,” an official said.

Lecornu is due to deliver the customary opening speech to the National Assembly next Wednesday, and should win the confidence which will follow.

“The Socialists will not take part but there is agreement not to bring down the government,” an official said.