Michel Barnier, France’s newly appointed Prime Minister, is grappling with the challenge of passing the 2025 budget through a parliament where he lacks a majority. The pressure is mounting, with this year’s budget deficit now exceeding predictions at 6% of the country’s economic output.

Barnier highlighted the issue in his recent policy speech, emphasizing the urgent need for action. President Emmanuel Macron appointed Barnier after delays, causing a delay in presenting the budget plans to parliament.

Debt Surge Explained

The rise in France’s public debt to €3.2 trillion can be traced back to COVID-19 pandemic aid and state subsidies. Experts point out that the government’s spending policies have led to the current economic predicament.

Barnier’s Plan

Barnier aims to reduce the budget deficit progressively over the years, with a focus on cutting public expenditure and some tax adjustments. Moreover, he plans to close tax loopholes to stabilize the economy.

Budget Battle Ahead

The road ahead for the budget is challenging, with Barnier facing opposition in parliament. Moreover, differing ideologies within political factions make reaching a consensus difficult, casting doubt on the budget’s success.

Financial Turbulence and Protests

France’s financial situation is causing concern, with market instability and higher borrowing costs. Citizens are protesting against budget cuts, signaling discontent with the government’s fiscal policies.

Article Edited by: Ashutosh Pandey