French Prime Minister Sebastien Lecornu Proposes Budget Amendments to Break Parliamentary Deadlock

French Prime Minister sebastien lecornu announced significant amendments to the 2026 draft budget on January 16, 2026, in an effort to secure backing from the Socialist Party. This move follows three months of failed parliamentary budget negotiations that have left the FR fiscal plan in a state of deadlock. The updated proposal includes measures to boost the income of low-income workers, students, and pensioners, while maintaining a firm budget deficit target of no higher than 5% of gross domestic product, and possibly lower.

Under the revised plan, the sebastien lecornu government will no longer cut a tax rebate on pensions as previously suggested. Additionally, a monthly income supplement benefit for low-income workers is set to rise by approximately 50 euros per month for some 3 million households. The government also plans to extend access to cheap meals for students in university canteens and implement new steps to boost affordable housing. These concessions are designed to bridge the gap with the left as the emmanuel macron administration seeks to stabilize the national economy.