France budget bill hits snag as lawmakers reject revenue plans

France's lower house almost unanimously rejected the income section of the budget bill on Saturday, throwing more uncertainty onto whether the divided parliament can pass an austerity budget by year's end.

France is under pressure to cut its budget deficit, but efforts have been hamstrung by political instability since President Emmanuel Macron called snap elections last year, leading to a fragmented parliament.

The National Assembly voted down the part of the budget bill that deals with taxation with 404 votes against after 125 hours of debate – an unprecedented level of rejection since France's Fifth Republic was set up in 1958.

Only one vote was for, with 84 abstentions – many from the government's camp.

The bill now passes to the Senate and then to a joint parliamentary committee tasked with reaching a compromise.

If both chambers cannot agree on the budget bill by the end of the year, the government can push it through by decree or extend the 2025 budget temporarily to allow for further debate.

Prime Minister Sebastien Lecornu has pledged to abandon a controversial constitutional power used in the past to slam through policies without a vote, as part of concessions to avoid the fate of his two predecessors who were forced out over cost-cutting measures.

Despite the setback, ministers on Saturday expressed optimism that an agreement was still possible.

"We are only halfway through the parliamentary process, and I remain convinced that a compromise can be reached," Finance Minister Roland Lescure said on social media platform Bluesky.

"I remain convinced that the majority of parliamentary groups will find the necessary common ground to allow our country to have a budget and to approach the year 2026 with stability and clarity for our businesses and fellow citizens," he added.