France 2026 Budget: Constitutional Council Begins Final Review Following Unprecedented Referral
PARIS, 06 February 2026 – Following months of political deadlock and the narrow survival of two no-confidence motions, France’s 2026 state budget has moved to its final hurdle: the Constitutional Council. In a move described by legal experts as highly unusual, Prime Minister Sébastien Lecornu has personally referred the legislation to the “Sages” to ensure the legal “solidity” of several controversial tax measures.
A Strategic Referral by the Prime Minister
While the 2026 budget was definitively adopted on Monday, 02 February 2026, after the government utilised Article 49.3 of the Constitution, it is not yet applicable. Prime Minister Lecornu has requested that the Constitutional Council examine specific articles, particularly those concerning increased taxation on wealthy individuals and patrimonial holdings. This self-referral is seen by analysts as a pre-emptive strike to prevent future legal challenges and to clarify the constitutionality of concessions made during the heated parliamentary debates.
The Council, which consists of nine members, now has a limited window to rule on whether the Finance Bill conforms to the French Constitution. Opposition parties, including the Rassemblement National, have also submitted their own appeals, specifically targeting the removal of certain funding for professional training (CPF) and new insurance mandates.
Key Figures of the 2026 Finance Bill
The 2026 budget aims to stabilise the French economy after a period of significant volatility. The following data outlines the primary fiscal targets established in the adopted text:
| Fiscal Metric | Target / Data |
|---|---|
| Deficit Target (2026) | 5% of Gross Domestic Product (GDP) |
| Previous Deficit (2025) | 5.4% of GDP |
| Judiciary Budget per Inhabitant | € 54.34 (based on 2022 baseline) |
| Constitutional Council Autonomy | Granted since 22 July 2010 |
The Role of the Constitutional Council
The Constitutional Council (Conseil Constitutionnel) serves as the highest constitutional authority in France. Its primary duty is to ensure that proposed statutes conform to the Constitution before they are signed into law by the President. Since the law of 22 July 2010, the Council has enjoyed full budgetary autonomy, ensuring its independence from the executive branch during such sensitive reviews.
The current review is expected to focus on the “Pacte Dutreil” and taxes on holding companies. If the Council censures specific articles, the government may be forced to adjust its revenue projections for the coming year, potentially complicating the Ministry of Finance’s goal of reducing the national deficit to 5%.
Frequently Asked Questions
Why did the Prime Minister refer his own budget to the Council?
Prime Minister Sébastien Lecornu referred the budget to verify the legal “solidity” of measures targeting the wealthy. By doing so, the government seeks to avoid “legislative insecurity” and ensure that the tax hikes cannot be easily overturned by future legal challenges once implemented.
Is the 2026 budget currently in effect?
No. Although the budget was adopted by Parliament on 02 February 2026, it remains suspended until the Constitutional Council delivers its verdict. This ruling is expected within the coming weeks.
What happens if the Council rejects part of the budget?
If the Council finds certain articles unconstitutional, those specific measures are “severed” or struck from the law. The rest of the budget can still be promulgated, but the government would lose the ability to enforce the rejected provisions, which could impact the total projected tax revenue for 2026.