France Races to Avoid US-Style Shutdown12/23 06:03

   France's fractured parliament is debating an emergency bill Tuesday designed 
to prevent a U.S.-style government shutdown next week, after negotiations on a 
2026 budget collapsed.

   PARIS (AP) -- France's fractured parliament is debating an emergency bill 
Tuesday designed to prevent a U.S.-style government shutdown next week, after 
negotiations on a 2026 budget collapsed.

   With just days left before the new year, President Emmanuel Macron and his 
Cabinet met Monday night to present the brief draft law. It aims "to ensure the 
continuity of national life and the functioning of public services," including 
collecting taxes and disbursing them to local authorities based on tax and 
spending levels in the 2025 budget, the Cabinet said.

   Lawmakers in the National Assembly, the French parliament's powerful lower 
house, made several amendments to the bill and are expected to vote on it late 
Tuesday, followed by the Senate. It is likely to pass despite deep divisions 
among the assembly's three main camps -- Marine Le Pen's far-right National 
Rally, left-wing forces and Macron's centrist minority government.

   The next step will be harder: building a real budget for 2026, and averting 
a new political crisis.

   Macron is desperate to bring down the huge deficit to 5% and bring back 
investor confidence in France's economy after protracted political deadlock and 
turmoil prompted by his ill-fated decision to call snap elections last year.

   "We need a budget as fast as possible so that we can move on," Finance 
Minister Roland Lescure said Tuesday on BFM television. "The longer (the 
temporary budget) lasts, the more it costs."

   France has a high level of public spending driven by generous social welfare 
programs, health care and education -- and a heavy tax burden that falls short 
of covering the costs.

   Prime Minister Sebastien Lecornu, who resigned then was reappointed this 
fall, is expected to make a public address later Tuesday about the budget 
situation.

   Lecornu's minority government won relief earlier this month when parliament 
narrowly approved a key health care budget bill, but at the cost of suspending 
Macron's flagship pension reform meant to raise the retirement age from 62 to 
64.