Cancellation of 500 million euros in budget credits for 2026

Decree No. 2026-857 of September 10, 2026, regarding the cancellation of credits, published in JORF No. 0212 of September 11, 2026, cancels 500 million euros in commitment authorizations (AE) and payment appropriations (CP) for the 2026 fiscal year. Signed by the Ministry of Action and Public Accounts (NOR CPPB2623497D), it aims to preserve the State’s budgetary balance in the face of rising hydrocarbon prices and a downward revision of growth.

A budgetary balance weakened since the beginning of the year

The balance of Law No. 2026-103 of February 19, 2026, on finances for 2026 is based on a public deficit target of -5.0% of GDP. This objective was weakened from the start of the year by the consequences of the conflict in the Near and Middle East and the blockade of the Strait of Hormuz, which caused a sharp increase in hydrocarbon prices, inflation, and bond rates, as well as an anticipated additional cost for the debt burden.

The Government had already reacted in June 2026 with two texts: Decree No. 2026-489 of June 11, 2026, regarding the opening and cancellation of credits as an advance, and Decree No. 2026-490 of June 11, 2026, regarding the cancellation of credits. The alert committee of July 7 then provided a mid-year assessment reporting new risks of spending overruns.

Cancellations based on organic law

This decree is issued on the basis of Article 14 of Organic Law No. 2001-692 of August 1, 2001, relating to finance laws. The cancellations almost exclusively concern non-payroll credits placed in reserve, in accordance with the circular of December 9, 2025, regarding the launch of the 2026 budgetary management and the establishment of the precautionary reserve.

New constraints emerged in the summer, including the downward revision of growth in the second quarter by INSEE (-0.2%), as well as the impact of heatwaves, fires, and droughts on activity. Measures are also required to support the agricultural sector and the populations most affected by fuel price levels.

All State missions affected

The cancellations, amounting to -0.5 billion € in AE and -0.5 billion € in CP, are distributed among the main missions:

Ecology, sustainable development and mobility: €138.4M in AC and €157.5M in PC;
Labor and employment: €52.4M in AC and €95.5M in PC;
Territorial cohesion: €59.2M in AC and €46.8M in PC;
Defense: €50.0M in AC and €50.0M in PC;
Research and higher education: €50.9M in AC and €35.0M in PC;
Immigration, asylum and integration: €37.4M in AC and €20.0M in PC;
General and territorial administration of the State: €27.8M in AC and €9.0M in PC;
Culture: €25.3M in AC and €20.2M in PC.

Added to these are more modest amounts for the missions State external action, Economy, School education, Public finance management, Security, Sport, youth and community life, Health, Social and pension schemes, Public transformation and service, Media, books and cultural industries, State financial commitments and Government action directorate.

An impact on all public policies

By design, these reserve credits are deemed non-programmed and aim to guarantee, in the event of contingencies, an overall execution of general budget expenditures that respects the initial parliamentary authorization. By affecting all missions, from ecology to defense, including labor and territorial cohesion, this decree illustrates the effort to control public spending undertaken for 2026, the effects of which will be felt across all citizens and public policies.

Source: Official Journal of the French Republic (JORF No. 0212 of September 11, 2026) — Decree No. 2026-857 of September 10, 2026, regarding the cancellation of credits (NOR CPPB2623497D) and the report relating to the decree (NOR CPPB2623497P).