France discusses the 2026 budget amid political divisions and tensions over the pension file

The French National Assembly continues its discussions on the draft budget for the upcoming year, amid clear political fragility within the government led by Prime Minister Élisabeth Borne. Despite relative progress in agreements with the Socialist Party, particularly regarding corporate tax, other issues such as pension reform continue to spark widespread debate within Parliament.

French President Emmanuel Macron has reintroduced the idea of a public referendum to resolve the pension issue, in an attempt to overcome party divisions, reflecting the magnitude of the challenges facing the government in passing the budget without resorting to Article 49.3 of the Constitution, which allows for the imposition of texts without parliamentary vote.

The French political scene is experiencing a state of sharp polarization, as Borne faces pressure from both the left and right opposition, amid warnings that any failure to pass the budget could threaten the stability of the government itself.