Budget negotiations remain difficult, with cross‑party efforts aimed at excluding extremes to reach a compromise that sustains governance.

Prime Minister Lecornu reiterates a commitment to stability, opposing both censure and dissolution to maintain governance.

A parliamentary committee rejected the budget bill in its current form, underscoring the financial hurdles as France seeks a workable budget for the euro zone’s second‑largest economy.

Faure’s meeting in Bercy with other parties aims to finalize agreements on ecological transition, stronger public services, an eight‑billion‑euro windfall tax on profits, and an enhanced activity bonus.

The PS will participate in discussions on Monday to push for ecological and public service measures and stronger corporate taxation as part of the budget talks.

Lecornu warns that censure motions could send a negative international signal and disrupt fragile budget talks, underscoring the cost of political instability.

Lecornu refuses to seek dissolution or a censure, and his office prepares for possible elections in mid‑March if the government collapses, offering limited relief for a fragile government.

France’s Socialist Party will not back no‑confidence motions from the far right RN or far left LFI over the EU‑Mercosur trade deal, providing temporary relief for the government as debates loom in the European Parliament and the National Assembly.

Olivier Faure notes Macron’s varied stance on Mercosur but emphasizes the government ultimately opposed the motions, while stressing an imminent vote in the European Parliament that adds pressure to the budget talks.

The PS signals it will assess the government’s text and decide yes or no based on content rather than the procedural route, including possibilities around 49.3 or ordonnances.

The government faces a precarious position ahead of the 2027 presidential election, with the far‑right RN posing a potential challenge to the incumbent administration.

Upcoming debates in the National Assembly and ongoing negotiations will shape how the Mercosur deal and budget are handled, affecting political risk for the administration.