France adopts stopgap budget to prevent government shutdown

France's parliament passed a "special budget law" on December 18 to ensure key government functions remain operational until a new budget is approved for the upcoming year.

The temporary law was approved by the National Assembly, the lower house of parliament, on December 16, and subsequently received unanimous approval from senators, Caliber.Az reports via French media.

The law, announced by President Emmanuel Macron following the ousting of Prime Minister Michel Barnier and his government earlier this month, will ensure the continuation of public services and allow the French state to keep collecting taxes.

The budget crisis stems from Barnier's use of a constitutional provision to pass the 2025 Social Security budget without parliamentary approval, a move that led to his removal after a no-confidence vote on December 4.

Barnier’s successor, François Bayrou, now faces the challenge of drafting a 2025 fiscal year budget that can gain parliamentary approval.

Bayrou has begun discussions with political parties to form a new Cabinet, starting December 16.

The political turmoil in France began in June when President Macron's centrist bloc failed in the European Parliament elections, with the far-right National Rally (RN) party securing significant gains.

In response, Macron called for snap parliamentary elections on June 30 and July 7, but no party reached the 289 seats required for an absolute majority in the National Assembly.

The left-wing New Popular Front (NFP) alliance won the most votes and seats in the second round and later insisted that the prime minister must come from their ranks, but it struggled to agree on a consensus candidate.

After weeks of internal disputes, the NFP nominated Lucie Castets for prime minister on July 23, but Macron rejected the left-wing candidate, stating he would not appoint a premier until mid-August, after the Paris Olympics.

His delay in appointing a new prime minister, following the resignation of Prime Minister Gabriel Attal on July 16, further destabilized the political environment.

On September 5, Macron appointed Barnier, a centre-right politician, former European commissioner, and former foreign minister, as prime minister.

Barnier's government became the first in France to collapse following a no-confidence vote since 1962.

By Tamilla Hasanova