France passed its 2026 budget, boosting defense spending by €6.7B despite cuts elsewhere, using constitutional powers to bypass parliament.

With the approval of France's 2026 budget, President Macron is able to raise defense spending by 6.7 billion euros ($7.9 billion) in spite of larger reductions in public spending to comply with EU debt regulations. A nuclear-powered submarine, armored vehicles, surface-to-air missiles, and a new voluntary military service program for 18 and 19-year-olds will all be supported by the funds. In addition to raising 7.3 billion euros through new taxes on big businesses, the government anticipates a 5% deficit, down from 5.4% in 2025. Prime Minister Lecornu suspended Macron's contentious pension reform while avoiding a no-confidence motion by using constitutional powers to circumvent a parliamentary vote. In his last year in office, Macron has made foreign policy a top priority. He has supported Greenland, backed Ukraine, and pushed for the designation of Iran's Revolutionary Guard as a terrorist organization. His Davos remarks about "respect over bullies" have garnered international attention.