Will France’s Government Collapse Over the 2027 Budget?

FRANCE IN TURMOIL · GOVERNMENT

France’s government has survived the riots so far, but its 2027 budget faces a hostile parliament and a decisive vote on 3 November.

Prime Minister Sébastien Lecornu runs a minority government, and France has already lost two prime ministers to parliament since December 2024. The riots of 17 October have added pressure from the street to a budget fight that will decide whether he lasts until the 2027 presidential election.

For American investors the question is practical: another government collapse would push up France’s borrowing costs and could leave the country without a budget for 2027. This page explains how a French government falls, where the votes stand and what the markets are betting.

The Short Answer

Not yet, and probably not over the riots themselves. No party has tabled a no-confidence motion over the unrest, and President Emmanuel Macron refused his interior minister’s resignation on 19 October to keep “continuous command” of the police.

The real danger is the budget, because the Socialists, whose restraint kept Lecornu in office this year, now threaten to vote him down. Background on the unrest itself is in why France is protesting.

Who Holds Power

Macron, a centrist, has been president since 2017, and his second and last term ends in May 2027. Lecornu, 40, became prime minister on 9 September 2025, resigned less than a month later and was reappointed by Macron on 10 October 2025.

His cabinet rests mainly on Macron’s centrist camp, chiefly his Renaissance party and its allies, with Laurent Nuñez at the Interior Ministry, Gérald Darmanin at Justice and Roland Lescure at the Economy Ministry. The groups that back it fall well short of a majority in the 577-seat National Assembly, where the RN holds the largest single group with about 120 seats.

How a French Government Falls

A government falls when an absolute majority of the Assembly’s sitting members, 289 when all 577 seats are filled, votes for a motion of censure. That happened to Michel Barnier in December 2024, the first such defeat since 1962, and François Bayrou lost a confidence vote he had called himself in September 2025.

Today the left-wing parties and the RN would each need the other to reach 289, which they have so far avoided on the budget. On 13 October the RN voted against a Socialist motion to throw out the 2027 budget bill before debate, and it failed by 236 votes to 149.

The 2027 Budget Fight

Economy Minister Roland Lescure told the Assembly on 13 October that the deficit will reach 5.4% of gross domestic product (GDP) in 2026, above the 5% first planned, and that the government aims for 5% in 2027. Public debt is set to rise from 119.3% of GDP this year to 121.7% next year, by his figures.

Lecornu survived last autumn after promising to suspend the 2023 pension reform, which had raised the retirement age, and the Socialists then declined to back censure motions. The 2026 budget became law only in February 2026, after he forced it through with Article 49.3.

For 2027, Socialist leader Olivier Faure warned in August that “there will be a censure” if the final budget resembles the programmes of Gabriel Attal and Édouard Philippe. A defeat of the revenue half on 3 November would send the bill to the Senate without the Assembly’s approval, but it would not by itself topple the government.

Lecornu has not decided whether to use Article 49.3 again, which would invite a censure motion straight away. If parliament has not decided within 70 days, the constitution lets the government enact the budget by ordinance, a power never used, and a stopgap “special law” to keep collecting taxes is another option, as in December 2024.

Could Macron Dissolve Parliament?

He can, but he says he will not: on 24 September Macron said a dissolution so close to the presidential election “would not be good for the country”. His last dissolution, in June 2024, produced the hung parliament that has made France so hard to govern.

That leaves three ways out of a deadlock: a new prime minister drawn from the same Assembly, a budget passed with the votes of one opposition camp, or a budget imposed by ordinance. Whichever it is, the president who takes office in May 2027 will inherit the problem.

What the Riots Change

The executive was already weak before the riots: Ifop’s monthly barometer, taken from 14 to 16 October, found favourable opinions of Macron down eight points to 25% and of Lecornu down six to 37%. Bruno Retailleau, president of the conservative Republicans (LR), and Gabriel Attal, leader of Macron’s Renaissance party, have both called for a state of emergency, which Lecornu has set aside for now.

Lecornu invited the five representative union confederations, the CFDT, CGT, FO, CFTC and CFE-CGC, to a meeting on 21 October and the parties to his office, the Hôtel de Matignon, on 22 October. Le Pen and RN president Jordan Bardella said they would send representatives rather than attend, while Lecornu accused the “ultra-left” of an agenda of chaos until the presidential election.

“The return to order is the precondition for everything else.”Prime Minister Sébastien Lecornu to the National Assembly, 20 October

What It Means for Markets

Bond investors already price the risk: the interest rate on France’s 10-year government bonds closed at about 4.92% on 20 October, and its premium over German debt rose to 153 basis points from 137 on 16 October, according to ING figures reported by BFM Bourse. Moody’s rates France Aa3 with a negative outlook, meaning a downgrade is more likely than an upgrade, one notch above Fitch and S&P Global, which both rate it A+.

A government collapse would most likely widen that premium again and add pressure on the ratings, which matter to US funds that hold euro-zone debt. Polymarket traders give France roughly even odds of passing a national budget by 31 December, and that market counts only a full finance law, not a stopgap special law.

What Prediction Markets Say

Polymarket, an online prediction-market exchange, runs markets on whether France passes a budget by 31 December and whether it declares a state of emergency, alongside the much larger market on the 2027 presidential election. These prices are bets by traders, not forecasts by The Rio Times, and the budget market is thin.

On Kalshi, which is regulated in the US by the Commodity Futures Trading Commission (CFTC), Marine Le Pen’s chance of winning the presidency rose from 44% at the close of 13 October to 53% to 54% on 21 October. Our 2027 election polls and odds page follows every candidate.

What Is Not Known

It is not known whether the Socialists will vote against the budget on 3 November or table a censure motion if Lecornu uses Article 49.3. It is also unclear whether a state of emergency, if declared, would change the balance in parliament.

We will update this page after each vote. For curfews and strike dates, see whether it is safe to travel to France.

Frequently Asked Questions

Did the French government collapse?

No, Prime Minister Sébastien Lecornu’s minority government is still in office, and no no-confidence motion has been tabled over the riots. The next test is the 2027 budget vote on 3 November.

Who is the prime minister of France?

Sébastien Lecornu, appointed by President Emmanuel Macron on 9 September 2025 and reappointed on 10 October 2025 after a brief resignation. He leads a minority government.

How many votes does it take to bring down the French government?

A motion of censure needs an absolute majority of the National Assembly’s sitting members, 289 when all 577 seats are filled. Neither the left nor Le Pen’s National Rally can reach that alone.

Can Macron dissolve parliament again?

He has the power, but on 24 September he said a dissolution before the presidential election would not be good for the country. He last dissolved the Assembly in June 2024.

What happens if France has no budget by 31 December?

Parliament can pass a stopgap special law so the state keeps collecting taxes, as it did in December 2024. The constitution also lets the government enact a budget by ordinance after 70 days without a decision, a power never used.

Sources: National Assembly record of 13 October (Roland Lescure, David Amiel) and budget calendar; LCP on the Socialist motion (14 October), on Olivier Faure (28 August) and on Macron and dissolution (24 September); Euronews on Lecornu’s reappointment (11 October 2025); Élysée communiqué on Laurent Nuñez via franceinfo (19 October); franceinfo on the state of emergency (21 October); France 24 on Lecornu at the Assembly (20 October); La Libre Belgique on the meeting with the parties (20 October); Ifop-Fiducial barometer (20 October); franceinfo on Moody’s (10 April); BFM Bourse (20 October); Polymarket and Kalshi public market data (21 October). As of 21 October 2026.

More: Why is France protesting? Our explainer on the riots, the curfews and the 2027 race.