The News
French Prime Minister François Bayrou survived no-confidence vote Wednesday after the far-right National Rally decided against toppling his government over its attempts to push through a 2025 budget.
France has been under significant pressure from the European Union and business leaders to approve its budget; the country has been at political stalemate since President Emmanuel Macron called a snap election last July that saw no party win an outright majority at a moment where public finances were in dire straits.
New figures show that France’s core budget deficit narrowed slightly in 2024, however, which could lower the pressure on Bayrou to make more radical changes to spending, Bloomberg wrote.
SIGNALS
France’s fiscal problems made worse by political crisis
France is in dire financial straits, a situation exacerbated by instability: Credit rating agency Moody’s downgraded the country in December, citing concerns over “political fragmentation.” Part of the problem is that successive governments in just the last year have failed to make the unpopular decisions needed to balance the books, a former chief economist at the International Monetary Fund told Politico. The malaise is not confined to France: In neighboring Germany, similar budget woes suggest the eurozone has failed to deliver on its promise of faster growth and better living standards, a columnist argued in The Guardian. Rather than more one-size-fits-all policies, it “may be time to try a little less Europe before it is too late,” he wrote.
France’s executive power comes into focus
France’s legislative gridlock has highlighted the importance of the president: Incumbent Emmanuel Macron is set to serve out his term until 2027, but other party leaders have already begun campaigning to replace him, Euractiv wrote. Far-right powerbroker Marine Le Pen has long pushed to force snap presidential elections that could see her attempt to take power. She could face competition from within her own party, however: Her protégé Jordan Bardella is more popular than Le Pen, and would likely be the favorite to contest the presidency if Macron makes it to 2027.