French outgoing Prime Minister Sebastien Lecornu delivers a statement in the courtyard at the Hotel Matignon in Paris after launching a series of talks with political parties' leaders as France faces a political crisis following the announcement of the resignation of the new government, France, October 8, 2025. REUTERS/Stephanie Lecocq/Pool
French outgoing Prime Minister Sebastien Lecornu delivers a statement in the courtyard at the Hotel Matignon in Paris after launching a series of talks with political parties' leaders as France faces a political crisis following the announcement of the resignation of the new government, France, October 8, 2025. REUTERS/Stephanie Lecocq/Pool
A microphone is set up in the courtyard before a statement by French outgoing Prime Minister Sebastien Lecornu at the Hotel Matignon in Paris after launching a series of talks with political parties' leaders as France faces a political crisis following the announcement of the resignation of the new government, France, October 8, 2025. REUTERS/Stephanie Lecocq

By Inti Landauro and Makini Brice

PARIS (Reuters) -Caretaker French Prime Minister Sebastien Lecornu struck a cautiously optimistic tone on Wednesday, saying a deal on the country's budget could eventually be reached, making the possibility of a snap election less likely.

Lecornu's remarks came as he was set to wrap up talks on Wednesday with various parties and report back to President Emmanuel Macron on whether he had found a way to end France's worst political crisis in decades.

"There is a willingness to have a budget for France before December 31 of this year," Lecornu told reporters after meetings on Tuesday with conservatives and centre-right parties, and before meeting the Socialist Party.

"And this willingness creates momentum and convergence, obviously, which reduces the prospects of dissolution (of parliament)," he said.

LECORNU TO REPORT TO MACRON LATER IN THE DAY

Macron has faced repeated opposition calls in recent days to call snap parliamentary elections, or else resign, to end the political crisis.

Lecornu, a Macron loyalist, said he would meet the president later on Wednesday, as planned, to discuss the results of his meetings and to see whether a deal was possible. Lecornu was also set to be interviewed on French TV about 8 p.m. (1800 GMT).

Lecornu, France's fifth prime minister in two years, tendered his and his government's resignation on Monday, hours after announcing the cabinet line-up on Sunday, making it the shortest-lived administration in modern France.

That came after allies and foes alike had threatened to topple the new government, with Lecornu saying that would make it impossible for him to do his job.

Far-right leader Marine Le Pen, who refused to take part in this round of talks with Lecornu, made clear on Wednesday she would not be part of any deal.

"I'll censure everything. Enough now — the joke has gone on long enough," she told reporters, reiterating her demand for snap parliamentary elections.

SOCIALISTS WANT WEALTH TAX, SUSPENSION OF PENSION REFORM

Based on his talks so far, Lecornu said he hoped a deal could be reached on bringing France's budget deficit down to between 4.7% and 5%, from a target of 5.4% in 2025.

The Socialists want a 2% wealth tax on France's richest 0.01% in the 2026 budget, making Lecornu's political survival contingent on a measure that has strong public support but alienates conservatives.

They also want France to row back on an unpopular reform that will make people work longer to qualify for a pension.

After meeting with Lecornu on Wednesday, Socialist Party chief Olivier Faure said he wanted to help find a way out of the crisis but that the left wanted to run the next government.

He added that Lecornu had given him no guarantees on the pension demand.

Acting education minister Elisabeth Borne said she was open to suspending the pension reform she herself steered through parliament in 2023, but others, including acting finance minister Roland Lescure, warned against such a costly move.

Markets have taken fright over the instability in France in recent days, with bonds and stocks tumbling as investors closely monitor the country's ability to tackle its yawning budget deficit.

French assets saw a modest improvement on Wednesday after Lecornu expressed cautious optimism about the budget, with Paris' CAC 40 index up 0.6% from 0.2% earlier.

(Reporting by Inti Landauro, Makini Brice, Sudip Kar-Gupta; additional reporting by Amanda Cooper, Alun John; Writing by Ingrid Melander; Editing by Ros Russell and Gareth Jones)