French lower house rejects 2027 budget revenue section, sends text to Senate

The vote and what changed

The French National Assembly rejected the revenue section of the 2027 finance bill on Wednesday, 4 November. All 458 deputies who cast a vote opposed it, while two abstained. The result followed about ten days of debate that reshaped the government's text, with deputies removing planned cuts to the tax allowance that pensioners receive and to local authority budgets, and dropping an extra tax on large companies. Because the lower house rejected the section, the text goes to the Senate in its original government version, with examination due to start on 20 November. The executive had expected the outcome, since the amendments changed the balance of the proposal substantially.

What the government is aiming for

Prime Minister Sébastien Lecornu's government wants to bring the deficit down to 5% of GDP in 2027, from an expected 5.4% this year. Reports differ on the size of the planned savings, putting them at 43 billion euros in one account and 54 billion in another. Public accounts minister David Amiel has put the deficit that would result from parliament's changes at 5.9% of GDP. He has argued that both savings and new revenue are needed to reduce public deficits. The government hopes to reach a deal in December, after the Senate has worked on the text, and the lower house could take it up again in a new reading. Lecornu's government has no parliamentary majority, and no compromise is taking shape, unlike last year when he secured a non-censure agreement with the Socialist Party (PS).

2026 expected5.4

2027 government target5

2027 with parliament's changes, per Amiel5.9

2026 expected

5.4 % of GDP

2027 government target

5 % of GDP

2027 with parliament's changes, per Amiel

5.9 % of GDP

Data from the article text

Political reactions

Opposition deputies criticised the budget from several directions. Éric Coquerel, the LFI chair of the finance committee, said the original plan lacked credibility.

“This budget was not credible from the start.”

Estelle Mercier of the PS went further, accusing Macron's allies of voting alongside the National Rally (RN) against certain taxes. Mercier put it this way:

“This is the testament of a power that will have managed the feat of enriching the richest while impoverishing the state.”

Renaissance deputy Paul Midy accused the RN and LFI of creating tens of billions of euros in extra taxes. RN budget spokesman Jean-Philippe Tanguy accused the government of knowingly misleading parliament by suggesting it can rewrite the budget in the government's place. Some deputies on the left called the government's growth forecasts 'insincere', noting that it left out tax measures they had passed because it considers them contrary to European law or international agreements.

Options if parliament stays deadlocked

The Senate, which has a conservative and centrist majority, could approve a substantially changed version, probably with lower tax revenue and more spending cuts. Last year it removed about 8 billion euros in extra tax revenue that the Assembly had added. If parliament does not settle the text, the government could push a package through under Article 49.3 of the constitution, but only if it survives a motion of no confidence. The government has also kept Article 47 in view, which allows the budget to be adopted by decree if parliament does not decide within 70 days.

Street pressure and strikes

Protesters have filled the streets in recent weeks demanding more spending on education and other public services, the opposite of the savings plan. Many of those protests ended in brawls, looting, riots, vandalism and arson. High school students' anger has prompted the government to promise smaller classes, more teachers and extra university places, though how to fund these commitments remains unclear. Unions have called national strikes and demonstrations for Thursday, 5 November, and a rise in the minimum wage has been floated as a possible response. Vincent Dussart, a public law professor at the Université Toulouse Capitole who specialises in public finance, described the government's position:

“The government finds itself in an extremely complicated financial situation that limits its room for manoeuvre.”

The next dated milestone is the Senate's examination of the text, which begins on 20 November.