In a rare display of cross-party unity on Wednesday, 458 MPs voted against the revenue section of the budget, with none in favour and just two abstentions.
The rejection – mirroring last year's budget deadlock – effectively ended the Assembly's first reading, preventing MPs from debating the spending provisions, which had already been rejected in committee.
Prime Minister Sébastien Lecornu's office said negotiations would resume in December, after the Senate had examined the government's original proposals.
"The time for compromise will come after the Senate's reading," Matignon said, indicating that any agreement would be based on the government's initial draft and the version adopted by senators.
France faces record €340bn borrowing test as government braces for 2027 budget
Deficit targets under pressure
The government's original budget aimed to reduce France's public deficit to 5 percent of GDP in 2027, down from a projected 5.4 percent this year, through savings worth approximately €43 billion.
But weaker-than-expected economic growth has already cast doubt on those targets, while MPs spent around ten days dismantling key elements of the government's financial plans.
They scrapped several proposed cost-cutting measures affecting pensioners and local authorities, along with a surtax on the profits of large companies.
Public Accounts Minister David Amiel warned that the amendments would have pushed the deficit to 5.9 percent of GDP, accusing opposition parties of undermining efforts to restore France's public finances.
National Rally (RN) MP Jean-Philippe Tanguy countered that the government was solely responsible for drafting a budget it was incapable of balancing.
The left-wing France Unbowed (LFI) party was equally critical.
"This budget fails to meet the needs of the population and makes worse what it is supposed to improve: the deficit," said Éric Coquerel, chairman of the Assembly's finance committee.
Laurent Marcangeli, leader of the centrist Horizons party, said the legislation had been "completely distorted" and called for a more responsible approach in light of the deteriorating economic outlook.
French public sector workers strike over pay freeze ahead of 2027 budget
December showdown looms
The budget's collapse comes amid mounting social and economic tensions, with Lecornu's government struggling to secure support in a deeply divided parliament.
Once the Senate has completed its examination, the legislation will return to the National Assembly for further debate, offering another opportunity to negotiate a compromise.
But if the deadlock persists, Lecornu could resort to Article 49.3 of the Constitution, allowing the government to push the budget through without a parliamentary vote unless MPs pass a motion of no confidence.
Such a move would carry considerable risks, requiring the government to avoid being brought down by an opposition coalition, potentially by securing the tacit support of either the Socialists or the RN.
Another option would be to adopt the budget by ordinance – an unprecedented procedure that could allow the government to bypass parliament if constitutional deadlines expire, but would restrict its room for manoeuvre.
For now, attention turns to the Senate, with France's political parties facing renewed pressure to reach an agreement before the end of the year – and avoid another government crisis.
(with newsires)



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