France Passes 2026 Budget With Major Defense Spending Hike

France’s parliament has adopted the delayed 2026 state budget after Prime Minister Sébastien Lecornu used a special constitutional power to push it through without a vote, clearing the way for a €6.7 billion increase in defense spending President Emmanuel Macron says is needed to confront threats from Russia’s war in Ukraine and conflicts in the Middle East. The budget, finalized after months of deadlock and failed compromises in a fractured legislature, will fund a new nuclear-powered attack submarine, hundreds of modern armored vehicles and new Aster surface‑to‑air missiles, and will underwrite a voluntary military service program for thousands of 18‑ and 19‑year‑olds. To contain a deficit targeted at 5% of GDP, the plan raises taxes on large companies’ profits by an estimated €7.3 billion and trims or restrains spending in most non‑defense sectors, even as France faces EU and ratings‑agency pressure to reduce debt. Macron’s government also agreed to suspend his unpopular pension reform raising the retirement age from 62 to 64 as a concession to Socialists to survive two no‑confidence votes. For U.S. readers, the move signals a significant shift in allied burden‑sharing within NATO and EU defense at a moment when Washington is pressing Europe to invest more in its own security as Russia’s war grinds on.