French National Assembly unanimously rejects budget bill

France’s National Assembly voted unanimously to reject the government’s budget bill, leaving the €43 billion fiscal squeeze increasingly likely to be imposed without parliamentary approval. The unanimous rejection underscores the government’s weak footing in the lower house and its difficulty securing a majority for the deficit-reduction package. Because the bill has now been struck down, the government is expected to turn to constitutional mechanisms to enact the budget without a vote. The standoff matters because the €43 billion in savings underpins France’s plans to bring its deficit back in line with EU rules. Next, watch whether the government formally invokes a no-confidence-proof procedure and whether opposition parties respond with a censure motion.