The delayed budget of France for this year is expected to be approved on Monday, the 2nd, paving the way for the promised increase in military spending by President Emmanuel Macron in response to threats linked to Russia’s war in Ukraine and conflicts in the Middle East.
The adoption of the budget closes a chaotic months-long process, marked by deep divisions in a fragmented Parliament unable to reach an agreement. Prime Minister Sébastien Lecornu resorted to a constitutional device to approve the text without a vote and is expected to survive two no-confidence motions scheduled for tonight.
Macron promised to expand defense investments to face risks ranging from Russia and nuclear proliferation to terrorism and cyberattacks. Although an emergency law averted a shutdown in December, only the full 2026 budget guarantees sufficient resources for the Armed Forces.
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The Ministry of Defense will receive 6.7 billion euros additional compared to 2025, while other sectors face spending constraints. Planned are the delivery of a new nuclear submarine, 362 armored vehicles, and new Aster missiles, in addition to the launch of a voluntary military service for 18- and 19-year-olds.
The government aims to reduce the deficit to 5% of GDP, from 5.4% in 2025, under pressure from the European Union and rating agencies. Without a parliamentary majority, Lecornu conceded to the Socialists, including suspending the unpopular pension reform that raised the retirement age.
The state’s deficit is estimated at 131.9 billion euros. Companies will face tax increases, such as an extra levy on large profits, with expected revenue of 7.3 billion euros in 2026.
In the final year of his mandate, Macron has shifted away from domestic politics and focused his efforts on external issues, such as security guarantees to Ukraine and European defense, gaining recent international prominence with indirect criticisms of tariff threats from U.S. President Donald Trump. Source: Associated Press*.
