French senators have approved the 2026 budget bill, but with amendments that are expected to worsen the fiscal deficit more than initially planned.

The conservative-dominated Senate passed the bill with 187 votes in favour and 109 against, following revisions to a version rejected by the National Assembly last month over tax provisions.

The next step involves a joint committee of seven lawmakers from both houses, who will meet on Friday to negotiate a new version of the bill.

This compromise will be presented to the National Assembly for a vote on 23 December, which could give the budget final approval.

The French government, led by Prime Minister Sebastien Lecornu, aims to limit the public sector deficit to less than 5% of economic output next year, down from an estimated 5.4% this year—the largest in the eurozone.

However, Finance Minister Roland Lescure has warned that the Senate’s amended version, with a deficit of 5.3%, is not acceptable and urged lawmakers to reach a compromise.

If no agreement is reached, the government may introduce emergency legislation to allow for temporary spending and borrowing until a proper budget can be passed.

Lecornu’s minority government faces challenges in a deeply divided parliament, where previous budget disputes have led to the downfall of three governments since President Emmanuel Macron lost his majority in the 2024 snap election.

Last week, the National Assembly narrowly approved the social security budget, which included a key concession to Socialist lawmakers by suspending a controversial 2023 pension reform. A final vote on this is set for Tuesday.

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