French lawmakers opened debate on the 2027 budget bill in the National Assembly on Tuesday, with tensions flaring over proposed austerity measures and the government’s handling of public debt. The discussions, which began with a preliminary examination of debt levels, have exposed deep divisions, raising the prospect of a no-confidence motion against the government less than seven months before the presidential election .
Prime Minister Sébastien Lecornu urged compromise, framing youth investment as a priority in the negotiations over the 3,863 amendments to the draft law . By Wednesday, the far-right National Rally (RN) had aligned with the government to block a rejection motion from the Socialists, as Lecornu faces the choice of invoking emergency constitutional powers or passing the budget by decree .
In Italy, the Council of Ministers approved the 2027 Budgetary Planning Document, a prerequisite for submission to the European Commission. Economy Minister Giancarlo Giorgetti warned of economic headwinds, emphasizing the need for €7-8 billion in savings from banks, energy, and gaming sectors to meet EU deficit targets . The document confirms existing spending trajectories, including a safeguard clause, but leaves no room for additional deficit measures beyond energy and defense exemptions.
