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Story summary
- Sébastien Lecornu, the French Prime Minister, faces a crisis after budget talks for 2026 collapsed on December 19, prompting emergency legislation to avert a shutdown.
- François Villeroy de Galhau, the central bank governor, warned that the stopgap lacks policy decisions and could worsen the deficit at 5.4%, the eurozone's highest.
- The Senate approved a 5.3% deficit budget, increasing pressure on Lecornu to consider using special constitutional powers, despite his reluctance.
