French Lawmakers Failed to Reach 2026 Budget Deal. French lawmakers failed to agree on a compromise 2026 budget, increasing the likelihood of emergency legislation to roll over spending limits into the new year. Members of a joint committee from both houses of parliament abandoned talks after less than an hour, unable to resolve differences on the budget bill. Prime Minister Sébastien Lecornu said he would consult political leaders on next steps, acknowledging that parliament would not pass a budget before year-end. The collapse of negotiations was expected to force the government to seek special legislation to allow spending, taxation and borrowing in early 2026. France’s central bank governor François Villeroy de Galhau warned that emergency measures would offer only a temporary fix and risked a higher deficit. Investors and ratings agencies closely watched the impasse as France grappled with a budget deficit running at 5.4% of output, the highest in the euro zone. The minority government had already eased its deficit target to secure Socialist support, while the Senate passed a separate budget with a 5.3% deficit. Villeroy said ongoing budget uncertainty was weighing on economic growth, costing France an estimated 0.2 percentage points.