In the absence of a budget for 2026 voted by Parliament, the possible entry into force on January 1 of a special law that guarantees the budgetary continuity of the State would cost the French economy 11 billion euros, the Ministry of Public Accounts indicated this Thursday, confirming information from the Echoes.
A special law of this type would authorize the State to collect existing taxes, while its expenses would be frozen by decree, pending the vote on a real budget, as happened in early 2025 after the censure of Michel Barnier’s government. This impact of 11,000 million euros would be “immediate”, according to the Ministry of Public Accounts: 3,000 million less income due to a lower growth of 0.2 points of GDP due to increased uncertainty and 8,000 million from savings measures that would not be carried out.
Retirement pensions indexed to inflation in the case of special law
Les Échos, which has consulted a note detailing these figures, cites, for example, retirement pensions that would remain indexed to inflation (3 billion), while they are frozen in the finance bill (PLF) presented to Parliament. Delaying some measures in particular would cost $1 billion a month, Bercy said.
Prime Minister Sébastien Lecornu escaped censure by a few votes on Thursday, and the Socialist Party gave him his chance in exchange for his promise to suspend pension reform. Budget debates can now begin in the National Assembly next week, and Parliament will have a total of 70 days to decide on the PLF, with a view to its enactment no later than December 31.
Source: BFM TV
