Tax & Finance

Special Finance Law of December 26, 2025 under Article 45 of the Organic Law on Finance Acts

🇫🇷France··Other·High Impact·View source ↗

AI-generated summary for informational purposes only. Not legal advice. See the original source for the authoritative text.

🇬🇧 English

France enacted a special finance law on December 26, 2025, invoking Article 45 of the Organic Law n°2001-692 of August 1, 2001 on Finance Acts (LOLF). This emergency mechanism is triggered when Parliament fails to pass a full annual budget law before the start of the new fiscal year. The special law authorizes the government to collect taxes and revenues and continue public spending at the levels previously authorized, ensuring uninterrupted operation of the French state and its territorial subdivisions (regions, departments, and municipalities). It does not introduce new appropriations or policy changes — it is strictly a continuity measure. This situation reflects a political crisis or legislative deadlock in France that prevented the adoption of a regular Finance Law for 2026 before the December 31, 2025 constitutional deadline. The special law bridges the gap until a full budget for 2026 can be passed by Parliament. Local governments and public services are also covered, meaning that funding for schools, hospitals, infrastructure maintenance, and civil servant salaries can continue without interruption during the transition period.

AI-generated summary. May contain errors. Refer to official sources for legal decisions.

Key Changes

  • Temporary authorization granted for the government to continue collecting all existing taxes and fiscal revenues beyond December 31, 2025, without a full Finance Law in place
  • Public expenditures maintained at previously authorized levels to ensure continuity of state services until a 2026 budget is formally adopted
  • Territorial governments (regions, departments, municipalities) are explicitly covered, ensuring their funding streams and operations are not interrupted

+ 3 more changes with Pro

Obligations

What this law requires

high

Government must collect taxes and revenues at previously authorized levels without introducing new tax measures or rate changes

French Government and Tax Administration (Direction Générale des Finances Publiques)
operational
high

Public spending must continue at levels previously authorized in prior budget appropriations without new appropriations or policy changes

All French public ministries, agencies, and public services
operational
high

Continue funding to local governments (regions, departments, municipalities) at previously authorized levels to maintain operational continuity

French Government and Ministry of Interior/Local Authorities
operational
high

Maintain funding for essential public services including schools, hospitals, infrastructure maintenance, and civil servant salaries without interruption

All French public service providers and public employers
operational
high

Refrain from implementing new policy initiatives or substantive changes to budget allocations until a full Finance Law for 2026 is adopted by Parliament

French Government and all public administration bodies
prohibition

Affected Parties

French central government ministries and agenciesRegional and departmental governments (collectivités territoriales)+7 more…

Tags

emergency budget,loi de finances spéciale,LOLF Article 45