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French Prime Minister Bypasses Parliament to Advance 2026 Budget Amid Political Deadlock

The invocation of a constitutional clause to bypass legislative deadlock highlights the tension...
Key Metrics

11.04

Heat Index
  • Impact Level
    Medium
  • Scope Level
    National
  • Last Update
    2026-01-20
Key Impacts
Positive Impacts (2)
German Bunds
Gold
Negative Impacts (3)
French Government Bonds (OATs)
EUR/USD Exchange Rate
Italian Government Bonds (BTPs)
Total impacts: 8 | Positive: 2 | Negative: 3
Event Overview

The invocation of a constitutional clause to bypass legislative deadlock highlights the tension between executive and legislative powers. It underscores the government's determination to push through fiscal policies, despite potential opposition and political risks.

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French Prime Minister Invokes Constitutional Clause to Pass 2026 Budget
2026-01-21 01:57

On the afternoon of the 20th, French Prime Minister Le Corni announced that he would invoke Article 49.3 of the Constitution to push through the 2026 national budget. This clause allows the government to bypass the National Assembly's voting process and assume direct political responsibility for the bill unless the opposition parties can propose and pass a motion of no confidence within the specified time. The move aims to break the deadlock in the budget review process but also exposes the government to the risk of a no-confidence motion.

Total records: 1
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