Special Finance Law of December 26, 2025 under Article 45 of the Organic Law on Finance Acts
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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.
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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
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Obligations
What this law requires
Government must collect taxes and revenues at previously authorized levels without introducing new tax measures or rate changes
Public spending must continue at levels previously authorized in prior budget appropriations without new appropriations or policy changes
Continue funding to local governments (regions, departments, municipalities) at previously authorized levels to maintain operational continuity
Maintain funding for essential public services including schools, hospitals, infrastructure maintenance, and civil servant salaries without interruption
Refrain from implementing new policy initiatives or substantive changes to budget allocations until a full Finance Law for 2026 is adopted by Parliament