France: Budget setback puts fiscal targets at risk – Rabobank
Oleh FXStreet Insights Team
Tanggal Diterbitkan: 28 Nov 2025 | Tanggal Dimodifikasi: 28 Nov 2025
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Rabobank's latest market comments highlight a significant political setback for the French government, as the National Assembly failed to finalize the 2026 draft budget's first reading.
Rabobank's latest market comments highlight a significant political setback for the French government, as the National Assembly failed to finalize the 2026 draft budget's first reading.
Despite the setback not being fatal, it clearly underlines the mounting difficulties in meeting fiscal objectives before the year-end, potentially leading to special procedures or contentious Article 49.3 use, although the latter has been dismissed due to associated political risks.
France's budget battle continues amid political risks
"The French government faced a significant setback this week as the National Assembly failed to complete the first reading of the 2026 draft budget before the 24 November deadline."
"This process makes it increasingly unlikely that Finance Minister Lecornu will achieve his goal of reducing the deficit to 4.7% in 2026 from 5.4% in 2025."
"Overall, Saturday’s setback wasn’t fatal, but it underscores the growing challenges in meeting fiscal targets before year-end."
(This story has been created with the assistance of AI.)
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