French PM moves to end budget stalemate
French Prime Minister Sébastien Lecornu has announced a new cabinet as he moves to break the political deadlock over the country’s 2026 budget and calm growing market unease over France’s finances.
Lecornu, reappointed by President Emmanuel Macron on Friday just days after tendering his resignation, confirmed on Sunday night that Roland Lescure would remain as finance minister.
The prime minister also introduced several new faces in an effort to win over opposition lawmakers in France’s hung parliament, including Paris police chief Laurent Nuñez, who will become interior minister.
Push to pass the 2026 budget
The reshuffled government will meet over the next two days to finalise the draft 2026 budget, which aims to rein in France’s soaring deficit while maintaining growth.
Lecornu said on X that his government’s sole mission was “to give France a budget by the end of the year,” adding that “only one thing counts: the interest of our country.”
The government faces a tight deadline and limited political room for manoeuvre. Since last year’s legislative elections left Macron without a parliamentary majority, France has cycled through three prime ministers, each struggling to secure approval for a budget that satisfies both Brussels and domestic political factions.
Markets watching closely
France’s deficit is projected to reach 5.4 per cent of GDP this year – well above EU limits – prompting investor concern and pushing up the cost of government borrowing.
The political uncertainty surrounding the budget has added to pressure on Macron’s administration as it tries to demonstrate fiscal discipline ahead of next year’s European elections.
While Lecornu’s reappointment has brought temporary stability, analysts say the new cabinet will be judged on whether it can pass a credible fiscal plan and restore market confidence.
“This government has been named with a mission to act,” Lecornu said in his statement. “Our responsibility is to find common ground and deliver results.”
Further details of the 2026 draft budget are expected to be unveiled later this week.
