France finally approved its 2026 budget on Monday after two no-confidence motions were defeated, clearing the way for the legislation to pass and ushering in a period of relative stability for Prime Minister Sebastien Lecornu’s fragile minority government.

Budget talks have dominated French politics for nearly two years, following President Emmanuel Macron’s 2024 snap election, which resulted in a hung parliament at a time when a large deficit in public finances made urgent fiscal tightening necessary.

The budget negotiations have already cost two prime ministers their positions, rattled debt markets, and raised concerns among France’s European partners, Reuters reports.

However, Lecornu, whose chaotic two-stage appointment in October drew global ridicule, was able to win backing from Socialist lawmakers through expensive but targeted concessions, enhancing his standing in the process.

“France finally has a budget. A budget that embraces clear choices and essential priorities. A budget that reins in public spending, which does not raise taxes for households and businesses," Lecornu said in a post on X.

Despite Lecornu facing a still-high budget deficit of 5% of GDP, investors have welcomed the newfound stability. The risk premium on French government debt over the German benchmark has fallen back to levels last seen in June 2024, before Macron’s snap-election announcement.

Two no-confidence votes, initiated by the far-left and far-right, failed to secure a majority after the Socialists refused to support them, clearing the way for the 2026 budget to be formally adopted.

Lecornu described the budget as a “breakthrough,” highlighting that it would increase defence spending by €6.5 billion.

While some lawmakers have voiced doubts, the plan aims to reduce the deficit to 5% of GDP in 2026, down from 5.4% in 2025. The French government had originally targeted 4.6%, but, according to right-wing rapporteur Philippe Juvin, the scrapping of pension reforms made such a reduction unattainable, The Guardian reports.

With just over a year remaining until the next presidential election in spring 2027, the temporary calm on the budget front is giving Macron some breathing room as he approaches the end of his second term with historically low approval ratings.

Macron is now focusing almost entirely on foreign policy, urging Europe to reduce its dependence on foreign powers and advocating a tougher stance toward US President Donald Trump on issues such as tariffs and the Greenland crisis.