France’s National Assembly rejected the 2027 state budget bill on Wednesday, November 4, with 458 votes against and two abstentions. The vote followed changes to the government’s proposal and means the bill will go to the Senate in its original form. Lawmakers did not debate the spending section in the chamber after it had been rejected earlier in committee.
The government said a search for compromise would come after the Senate’s review. The Senate is scheduled to begin examining the bill on November 20, with a possible agreement in December based on the initial government proposal and the Senate’s version, or when the bill returns to the National Assembly for a new reading.
Public Accounts Minister David Amiel said the amendments made by lawmakers could push the deficit to 5.9% of gross domestic product, compared with the 5% target in the government’s proposal. The bill originally aimed to reduce the public deficit to 5% of GDP in 2027, from an expected 5.4% this year, through about €43 billion in savings. Several lawmakers and the minister have questioned whether that path remains achievable amid weaker-than-expected growth.
During roughly ten days of debate, lawmakers removed several proposed savings measures, including changes affecting pensioners’ tax allowances and local authorities, as well as a surcharge on large companies’ profits. Horizons parliamentary leader Laurent Marcangeli said the bill had been substantially altered and called for a responsible version in light of weaker economic prospects.
The government could seek to pass the budget in December using Article 49.3 or a budget order. The first option would depend on the government avoiding a no-confidence vote supported by the National Rally or the Socialist Party. The second, which has never been used, could limit the government’s ability to revise the bill as it chooses.
Sources: Le Monde Politique.