French lower house rejects 2027 budget at first reading

France’s National Assembly has rejected the tax section of the government’s 2027 budget, voting against it unanimously among the 458 MPs who took part. Two MPs abstained. The rejection means the full budget has also failed at its first reading in the lower house.

The proposal now goes to the Senate. The government hopes to reach an agreement in December, after senators have considered it.

Ten days of debate substantially altered the budget. MPs removed planned cuts affecting pensioners and local authorities, and dropped an additional tax on profits at large companies. Budget Minister David Amiel said the changes would raise the projected deficit to 5.9% of gross domestic product.

The government’s original plan aimed to bring the deficit down to 5% of GDP next year, from an expected 5.4% this year, through about €43 billion in savings.

The spending cuts have also drawn protests, with demonstrators calling for greater investment in education and other public services. Unions have called for another nationwide round of strikes and demonstrations on Thursday.