France, Jan. 16 -- The eurozone's second-largest economy has been bogged down in political crisis since President Emmanuel Macron called snap polls in 2024, in which he lost his majority.

In a bid to survive being toppled by parliament like his two predecessors, Prime Minister Sebastien Lecornu last year pledged to seek parliament approval for a 2026 austerity budget - and not ram it through without a vote.

He managed to get a bill on social security spending approved by year end, but lawmakers have failed to reach a compromise on state expenses.

Lecornu's office said late Thursday that it would be "impossible to adopt a budget by a vote" and that it would be looking at two alternative options.

One is to use a constitutional power und...