IGF warns extended special budget law could trigger major fiscal risks in 2027

Jérôme Fournil, inspector general of finance and former chief of staff to former Prime Minister Michel Barnier, said recent increases in financial stress and soaring interest rates have heightened concerns about a special law extending through 2027. The IGF’s report released in August warned of "major risks" if the temporary budgeting tool were used for several months, noting that it could render public-finance recovery impossible.

The special law, employed in 2025-26 to bridge budget gaps when parliament delays approval, normally lasts six weeks; however, with the spring 2027 presidential election and subsequent legislative elections, it could be in force for up to a year. Since the report, the war in the Middle East and higher rates have further deteriorated the fiscal outlook, reinforcing the IGF’s warning. Fournil emphasized that operating without a proper budget dashboard during a prolonged financial crisis would be untenable.