France Averts US-Style Shutdown with Emergency Bill After Budget Talks Collapse

• France's parliament approved an emergency bill to keep public services running, averting a US-style government shutdown.
• The bill was passed after negotiations for the 2026 budget collapsed, ensuring continuity of national life and public services based on 2025 budget levels.
• The measure passed despite significant political divisions between Marine Le Pen’s National Rally, left-wing parties, and Emmanuel Macron’s centrist minority government.
• Finance Minister Roland Lescure warned that relying on this emergency law for too long risks greatly weakening the French economy, emphasizing the need for a full 2026 budget.
• President Emmanuel Macron seeks to cut France’s deficit to 5% of GDP and restore investor confidence amidst strained finances and high public spending.

Why It Matters: France passed an emergency bill to prevent a shutdown, but faces pressure to agree on the 2026 budget.