France’s National Assembly has overwhelmingly rejected the revenue section of the government’s proposed 2026 budget, delivering a major setback to Prime Minister Sébastien Lecornu and intensifying political deadlock over deficit reduction.

After more than 120 hours of heated debate, lawmakers voted 404–1 against the taxation provisions, which were designed to introduce new measures aimed at curbing France’s ballooning deficit, projected at 5.5% of GDP in 2025.

The rejection sends the draft bill to the Senate, where significant revisions are expected. A joint committee will later attempt to reconcile differences between the two chambers. Finance Minister Roland Lescure sought to downplay the defeat, insisting the process is “only halfway through” and expressing confidence that a cross-party compromise can still be reached.

Lecornu, who has pledged not to invoke Article 49.3 to force the budget through, now faces a tight timeline. If no agreement is reached by early December, the government could impose the budget by decree, a move likely to provoke further backlash. The Socialists, holding pivotal swing votes, have tied their support to suspending controversial pension reforms, adding another layer of complexity to negotiations.

The rejection marks the latest parliamentary setback for President Emmanuel Macron’s minority government, which has struggled since losing its absolute majority in the 2024 snap elections. The previous cabinet collapsed during last year’s budget battle, and investor concerns are mounting as France risks further deterioration of its fiscal position without decisive cuts.

This development underscores the fragile state of Macron’s government and the difficulty of pushing through fiscal reforms in a fractured political landscape, with the looming possibility of decree imposition raising the stakes for both parliament and the executive.