French lawmakers are expected to vote Wednesday to suspend President Emmanuel Macron’s controversial pension reform, as the government battles to push next year’s budget through a

deeply divided parliament.

The move comes amid heightened political tension following Macron’s snap election last year, which left him without a parliamentary majority. The resulting gridlock toppled former Prime Minister Michel Barnier over last year’s spending bill and continues to test the government’s stability.

With France’s budget deficit now the largest in the eurozone, both investors and European partners are closely watching the outcome. Political uncertainty has already seen five prime ministers come and go in just two years.

Even if lawmakers approve the article halting the pension reform, the suspension will only take effect if the broader social security bill passes in a final vote expected later this month.

Lecornu gains ground with concessions

Prime Minister Sébastien Lecornu’s fragile government, now in its second iteration, has managed to advance sections of the budget after making costly compromises. Among the most significant was a deal with the Socialist bloc to freeze Macron’s plan to raise the retirement age from 62 to 64 — a key condition for their support.

The suspension effectively maintains the retirement age at 62 years and nine months until after the 2027 presidential election — a painful concession for Macron loyalists but a critical lifeline for Lecornu.

“Three and a half million French people will be able to retire earlier,” said Socialist MP Mélanie Thomin. “We are proving that building consensus pays off.”

Deficit targets under pressure

Analysts warn that such concessions will make it harder for France to meet its target of cutting the deficit by €30 billion. No updated forecasts have been released, as the final shape of the budget remains uncertain.

Despite fiscal concerns, French bond yields have eased in recent weeks, reflecting diminished fears of another government collapse.

Political divisions persist

Still, suspending the pension reform offers no guarantee of political stability. Left-wing allies — including the Greens and Communists — remain divided over whether to back Lecornu’s government, while far-right and far-left parties continue to demand fresh elections.

Former Prime Minister Gabriel Attal criticized the suspension, calling it a setback for the French economy. However, he said Macron’s centrist party will abstain rather than oppose the measure to avoid triggering another crisis.

“We are clear-eyed about the fact that this suspension will not be good news for France’s economy,” Attal told parliament. “But our priority is to ensure the government can continue to function.” Photo by Dennis G. Jarvis, Wikimedia commons.