May 28, 2025 5:59 pm
Full News

French Finance Minister Stresses Budget Flexibility Amid Far-Right Pressure

French Finance Minister Antoine Armand stated on Saturday that the 2025 budget could still be improved but stopped short of offering significant concessions in the face of mounting pressure from the far-right National Rally (RN). The standoff threatens Prime Minister Michel Barnier’s fragile minority government as the RN demands further changes.

France’s budget deficit has ballooned this year, placing its government bonds under pressure. However, ratings agency Standard & Poor’s provided temporary relief on Friday by maintaining the country’s credit rating. Despite this, the government faces political turmoil, with both the far left and far right signaling their willingness to bring Barnier’s administration down over the proposed budget.

The contentious budget aims to slash €60 billion ($64 billion) through tax hikes and spending cuts. RN leader Marine Le Pen, whose tacit support is critical for Barnier’s survival, has set a Monday deadline for her demands, which include adjustments to pensions and medication reimbursements.

“This government is open to dialogue, respectful of differing views, and committed to improving the budget,” Armand told reporters. However, he emphasized that the real ultimatum was ensuring France had a functioning budget.

Concessions and Demands

The government has already made concessions, including dropping a proposed electricity tax increase, as demanded by the RN. However, the far-right party insists on further measures, such as tying pension hikes to inflation—a step the government planned to delay to curb costs. Additionally, the RN is pushing for the reversal of medication reimbursement cuts, higher taxes on share buybacks, and reductions in France’s contribution to the European Union’s budget.

RN lawmaker Jean-Philippe Tanguy warned on Saturday that if the social security bill presented on Monday does not include the demanded changes, the party would support a no-confidence motion.

Political and Economic Risks

The government may have to resort to a constitutional provision to force the budget through parliament, a move that would automatically trigger a no-confidence vote. The RN has hinted it will base its decision on the government’s willingness to compromise on key issues.

Meanwhile, the budget’s goal of reducing the deficit to 5% of GDP next year, down from over 6% in 2023, is increasingly uncertain due to costly concessions. Standard & Poor’s forecasts a deficit of 5.3% for 2024 and warned of doubts about France’s ability to meet the EU-mandated 3% target by 2029.

The standoff has rattled financial markets, with French debt and stocks under pressure. The risk premium on French government bonds has reached its highest level in over a decade, highlighting investor concerns over political instability.

“Political instability and the absence of a budget would lead to a sharp rise in the financing costs of French debt,” Armand cautioned.

Related News
U.S. State Department Highlights Concerns on Political Repression in Bangladesh and Georgia’s Electoral Environment
Sectarian Killings Spread to Damascus as Alawite Men Abducted and Executed
Final Draft of Ceasefire Deal Presented to Israel and Hamas
Macron Admits Early Elections Created Political Instability in France
Al Pacino’s Wild Night: The Time He Was Almost “Kidnapped” After a Bar Night Out
Protest Held Outside Indian Embassy in Washington, D.C.
Related Posts
Trump Promised ‘No Tax on Social Security’—But the GOP Tax Bill Falls Short
Continued Downtrend in Bangladesh Stock Market Sparks Investor Anxiety
Germany’s Chancellor Promises to Support Ukraine in Producing Long-Range Missiles
Trump’s 5-Step Strategy to Keep GOP Control of the House in 2026
Jakarta Emerges as France’s Leading Arms Client in Southeast Asians
Trump’s Fury with Putin Grows Amid Republican Rift Over Ukraine War
More News

Is Sheikh Hasina’s Comeback on the Horizon? Political Campaign Begins from Exile

Dhaka, Bangladesh – Sheikh Hasina, the former Prime Minister of Bangladesh and leader of the Awami League, has been in exile since August 5, 2024, following a meticulously designed student uprising that led to a dramatic shift in the political landscape. In the wake of the protests, Dr. Muhammad Yunus captured power, forcing Hasina into […]

Best Red Carpet Looks at the 2025 Golden Globe Awards

The 82nd Golden Globe Awards have concluded, and Hollywood’s biggest stars were out in full force, dazzling everyone with their fashion, style, and glamour. The red carpet was a showcase of beautiful outfits, stunning makeup, and bold fashion statements. Golden Hues and MetallicsThis year’s Golden Globes saw the rise of golden hues and metallic shades […]

Pep Guardiola has broken up with 30 years of marriage, Spanish media claim

Pep Guardiola’s time is not going well at all. The coach, who won four consecutive Premier League titles, is on the verge of losing the title this season. With such a misery of the field, the problem outside the field has also been added. According to Spanish media Sport, Guardiola and his wife Cristina Serra […]

Tornado Devastates the United States, At Least 10 Dead

A powerful tornado has wreaked havoc in the central and southern regions of the United States, particularly in Missouri, where at least 10 people have been killed. The tornado has caused massive destruction, leaving many homes in ruins. Authorities confirmed the casualties and damage on Saturday. Missouri’s governor warned that another tornado might strike later. […]

Four Foreign Nationals Removed from Australia After Being Found on Remote NT Island

Four foreign nationals who were reportedly discovered on a remote island in the Northern Territory have been removed from Australia. The individuals were found on Croker Island, located north of Garig Gunak Barlu National Park, near Arnhem Land, earlier this week, according to reports from ABC. Although it has been confirmed that the four individuals […]

Statement from President Joe Biden on $1 Trillion in Private Sector Investments Under the Biden-Harris Administration

Statement from President Joe Biden on $1 Trillion in Private Sector Investments Under the Biden-Harris Administration When I took office, the pandemic was raging and the economy was reeling. From Day One, I was determined to not only deliver economic relief, but to invest in America and grow the economy from the middle out and […]

Mauna Loa Observatory Faces Closure Amid Federal Cost-Cutting Measures

The Mauna Loa Observatory, a cornerstone of global climate research since 1958, is at risk of closure as part of sweeping federal cost-cutting measures. Located on the slopes of the world’s largest active volcano in Hawaii, the observatory has been instrumental in tracking greenhouse gas levels and producing the iconic Keeling Curve, which documents the […]

Judge Orders Return of Wrongfully Deported Maryland Man

In a landmark ruling, U.S. District Judge Paula Xinis ordered the Trump administration to return Kilmar Abrego Garcia, a Salvadoran migrant wrongfully deported to El Salvador, to the United States by April 7. The decision follows the government’s admission that Abrego Garcia, who legally resided in the U.S. with a work permit, was deported in […]

Brazil to Face Argentina with Six Changes in the Starting XI

Brazil will face Argentina in the World Cup qualifiers on Wednesday at Monumental Stadium. The match will kick off at 6:00 AM Bangladesh time. Two days before the match, Brazilian media outlet Globo revealed Brazil’s starting XI. According to Globo, head coach Dorival Júnior has made six changes to the team that played against Colombia […]

UN Urges Action as 2024 Becomes Warmest Year on Record

Geneva – The United Nations has issued a stark warning about the escalating impacts of climate change, as 2024 is set to become the warmest year ever recorded. The UN’s weather and climate agency highlighted a decade of unprecedented heat, with greenhouse gas emissions reaching new record highs. WMO Secretary-General Celeste Saulo emphasized the daily […]