France's Finance Minister Roland Lescure has stated that the government is prepared to invoke special constitutional powers to bypass parliament and pass tens of billions of euros in spending cuts if budget negotiations stall next year.

In an interview, Lescure said he is willing to negotiate on all aspects of the budget but has set two red lines: the budget deficit must not exceed 5% of GDP, and any adjustments must avoid harming economic growth.

Lescure outlined the government's strategy for pushing measures through a fragmented and combative National Assembly ahead of next spring's presidential election.

He indicated that if a majority of lawmakers ultimately refuse to pass the budget, the government is ready to invoke Article 49.3 of the French Constitution, which allows the government to pass legislation without a vote in the National Assembly.

"We will use every means necessary," Lescure said.

Investors are concerned that paralysis in France's political system is preventing public spending from being brought under control, contributing to a recent surge in the country's borrowing costs.

The budget proposal Lescure unveiled last week includes 43 billion euros (approximately $48 billion) in cuts, which has already drawn criticism from leading candidates including far-right leader Marine Le Pen and far-left figure Jean-Luc Melenchon.

The budget negotiations are unfolding against a backdrop of nationwide student protests. Demonstrators are demanding that the government increase spending on the education system, including repairing dilapidated infrastructure, reducing class sizes, and hiring new teachers.

On Tuesday, more than 260,000 students, parents, and teachers took to the streets, with protesters blockading hundreds of high schools.

In some areas, protests turned violent, with demonstrators burning trash bins, damaging bus stops, and throwing objects, while police responded with batons and tear gas.

French authorities said more than 200 students were injured during the protests.

Protesters are also dissatisfied with Lescure's spending cuts, viewing them as austerity measures. The budget plan calls for a 1.2 billion euro increase in education funding, but simultaneously plans to cut over 1,500 teaching positions amid declining student numbers.

If the government invokes Article 49.3, lawmakers can respond by filing a no-confidence motion, which if passed would topple the government and kill the budget.

In recent years, France's previous two prime ministers faced this outcome when attempting to push through spending cuts.

If the government of current Prime Minister Sebastien Lecornu determines it cannot survive a no-confidence vote, it can still use a series of executive orders to pass the budget. This option becomes available if the bill has not received a final vote 70 days after submission.

"It's a guardrail. There's always a backup plan," Lescure said.

The main point of contention is Lescure's plan to reduce the rate at which many pension payments are indexed to inflation.

Lescure noted that pension payments rose 5.4% in 2024, costing 15 billion euros.

"If we do nothing, pensions will cost 15 billion euros more next year," he said.

Both Le Pen and Melenchon are campaigning on expanding France's pension spending, which currently stands at 14% of GDP, and lowering the retirement age to 60.

Lescure said that after discussions with aides to Le Pen and Melenchon, he added a special provision to the budget that would allow the winner of the spring election to "reverse" parts of the budget, including the pension payment measures.

Le Pen said Tuesday that the government's proposed budget is both ineffective and unfair, and stated she would seek improvements during the upcoming budget negotiations.

But when asked whether the National Rally has any red lines in the negotiations, Le Pen was cautious in her wording.

"The state of public finances, particularly pressure from the bond market, does not allow us to afford imposing any constraints," she told reporters.

Instead, Le Pen outlined her goals for cleaning up the nation's finances, pledging to cut 140 billion euros in spending and reduce the deficit to 2.2% of GDP by 2032.

"We must act immediately, or we risk losing control of public finances, which would force our country into socially unjust and economically suicidal choices," Le Pen said.

How Le Pen would achieve these goals remains unclear. She wants to reduce France's contributions to the European Union and restrict social benefits for legal foreign residents. Some of her plans would create new fiscal burdens, including exempting French citizens under 30 from income tax and cutting taxes on fuel and other essentials.

In the interview, Lescure said it is in the interest of Le Pen and other candidates for the government to pass the budget as quickly as possible so they can pivot to the presidential campaign. Otherwise, the budget battle could drag into next year, amplifying uncertainty and undermining economic growth.

"They will either inherit a sound, difficult budget that can be modified on the details they don't like — or there will be no budget. If there is no budget, it's a mess," Lescure said.