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French Prime Minister Francois Bayro survived a vote of confidence in the National Assembly on Wednesday and pushed during the 2025 budget aimed at taming the country's deficit.
The vote was run by Bayro's move on Monday to use a constitutional condition to create a budget through Parliament – an unavoidable maneuver because it does not have a majority and French opposition parties refused to support government budgets.
His predecessor, conservative politician Michel Barnier, used the same constitutional method, but he lost the blame and was Overthrow After three months, when the left and the right joined the forces to topple it.
Payro He succeeded him negotiating the budget concessions with the Mild Socialist Party (PS), while Barnee focused his efforts to win the implicit support of the extreme right, led by Marine Loop.
The Prime Minister admitted to the legislators that the budget was “incomplete” and “not the one that we were hoping”, but they argued that it was necessary to pass it to ensure the stability of the economy, families and investors.
The budget vote should offer at least a temporary comfort from Political turmoil in FranceAfter President Emmanuel Macron has provided four prime ministers since early 2024.
Gridlock has worsened since then Macron Snap elections are called last summer, only for their loss and a national assembly that was broken into three similar groups.
The financial markets have been reassured this week by the possibility of approval of the budget. The spread of borrowing costs in France for 10 years of Germany decreased to 0.71 percentage points, and is still high according to the criteria of recent years, but less than 0.9 percentage points reached in November.
The Socialists-who were the decisive swing vote on Wednesday instead of Rassamplement National-refrained in voting without confidence in the name of avoiding an explicit political crisis. They separated for the first time with the rest of the left -wing coalition and its largest component, which is the extreme left for France (France is not engraved), which accused them of treason.
PS defended himself by saying that he forced the government to retract 4000 teachers and raise the cost of health care and medicines for consumers. In a potentially larger transformation, Bayro also to open The “Re -negotiation” section of the unpopular increase at the age of Macron at the age of retirement for workers from 62 to 64. Unions and legislators will hold talks on pensions in the coming months.
Only 128 members of the National Assembly voted on Andrew Bayro-those who belong to the far left, Communists, and vegetables-much less than 289 needed for the majority.
The late 2025 budget is less ambitious in terms of cutting the deficit from issuing the previous government, which is a financial package of 50 billion euros in tax increases and spending cuts, a decrease of 60 billion euros.
The independent supervision council estimated that 90 percent of the financial voltage will come from tax increases, not spending discounts. About 8 billion euros of revenue will temporarily reach the largest new tax companies, other fees will collect 4 billion euros, and the wealthy will pay an additional tax to collect 2 billion euros.
Public spending will continue to increase, despite a significant reduction in ministries' budgets, to a large extent because it has not been done much to treat pensions and health care, which represents about half of government spending.
France's deficit has been swollen in recent years due to the generous financial support of workers and companies during the Covid-19 pandemic and the subsequent energy crisis. Macron pro -business policies also included non -funded tax discounts aimed at enhancing growth and employment.
The deteriorating public affairs in the country became a major issue in the past year, as the government has overpowered and repeated the goals of its own inability to end the year with a shortage of budget about 6 percent of GDP. France plans to raise about 300 billion euros of bond investors this year – a historically high level. With high interest rates, borrowing costs are expected to reach 54 billion euros this year, almost such as the defense budget.
The Bayro government pledged to reduce France's deficit to 5.4 percent of national production by the end of this year; Barnier aims to reach 5 percent of GDP.
France is still much higher than 3 percent of the ceiling of deficit in the gross domestic product developed by the European Union, and it is among the worst performance in the region. Brussels has placed it on the list of monitoring countries with excessive deficit and will be closely monitored to see if France is offering.
Additional reports by Ian Smith in London
