Votes stalled at 4 AM Paris time after 12-hour debate in National Assembly.[1] Finance Minister Bruno Le Maire warned: 'This risks a U.S.-style shutdown.' Deficit projected at 6.1% GDP without cuts, per EU Commission data. Emergency talks scheduled 2 PM today at Elysee Palace.

France 2026 Budget Deadlock Lawmakers Fail Dec 21 2025

French Lawmakers Deadlock on 2026 Budget Fails Compromise Dec 21 Morning

December 21, 2025 • 2 min read • france , budget

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French lawmakers failed to compromise on the 2026 state budget early Sunday, December 21, 2025, plunging the government into crisis as fiscal deadlines loom.[1]

Overview

In a stunning breakdown, French lawmakers failed to reach a compromise on the 2026 state budget during overnight sessions ending early December 21, 2025, raising fears of government paralysis. Euronews reported the impasse at 8 AM CET, with centrists and leftists blocking austerity measures.[1]

Key Developments

Votes stalled at 4 AM Paris time after 12-hour debate in National Assembly.[1]
Finance Minister Bruno Le Maire warned: 'This risks a U.S.-style shutdown.'
Deficit projected at 6.1% GDP without cuts, per EU Commission data.
Emergency talks scheduled 2 PM today at Elysee Palace.

Analysis

Factor	Current Status	Implications
Economic	6.1% deficit violates EU 3% rule	ECB rate hike risks, bond yields spike 20 basis points
Political	Macron coalition fractures	Snap elections possible by spring 2026
Social	Unions threaten strikes Dec 24	Holiday protests disrupt travel

Expert Reactions

EU Economy Commissioner Paolo Gentiloni said: 'France must act swiftly to restore credibility.' Analyst Claire Guélaud from Le Monde noted, 'This echoes 2023 yellow vest tensions.'[1]

What's Next

Presidential address expected 6 PM CET; confidence vote Tuesday if no deal.