French parliament passes emergency budget extension

French lawmakers Tuesday passed last-minute legislation to keep the government in business into January after the divided legislature failed to agree a full budget for the coming year. 

The legislation was passed by the lower house of parliament earlier Tuesday before being passed by the Senate late in the evening.

Bickering lawmakers had been racing to agree on a budget by year-end, as the eurozone's second largest economy faces mounting pressure to control its deficit and soaring debt.  

But parliament's lower house -- increasingly divided since snap elections last year -- only managed to agree on half of the two-part budget after two and a half months of debates. 

Prime Minister Sebastien Lecornu submitted a "special law" for the state to continue to collect taxes and pay civil servants based on the 2025 budget from January 1. 

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However, it does not allow for new spending, including on defence, a mounting priority in the face of a confrontation with Russia over Ukraine.

Officials have warned the special law is only a stopgap and that controlling France's deficit requires swift action. 

President Emmanuel Macron told ministers on Monday the government would need to provide a budget to meet the goal of getting the deficit under five percent of GDP while also funding their priorities as soon as possible in January.  

Lawmakers will reconvene at the start of the year for fresh sparring over the budget bill. 

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