One of the infantry crosses a street flooded by water after heavy rains in Paris on October 17, 2024.
Joel Sagate AFP | Gety pictures
Flash data showed on Thursday that France's economy shrunk a little in the fourth quarter, as it highlighted the urgent need for French legislators who are warring to overcome their differences and agree on the 2025 budget.
The economy recorded 0.1 % in the fourth quarter in the previous three months, The country's statistical agency revealed on ThursdayReducing 0.4 % growth in the third quarter of 2024. The economists of Reuters expected growth that the growth would be fixed.
The besieged economy in France has been given a batch Olympic Games in Paris Last summer, but political turmoil followed this since then, leaving financial challenges – a large budget deficit in France and increasing the increasing debts – without a solution.
Paris's political recession has been calm since the sudden elections of Parliament last June and July. The performance of both the far left and the extreme right was well in the voting rounds, which led to the Rangenste in the National Assembly about who should be ruled. in the end, President Emmanuel Macron installed a conservative government in SeptemberThe political factions are alienated to the left and the right.
Depending on the extreme right to obtain support, the government of the then Minister, Michelle Barnier, was vulnerable to challenges from both sides of the political spectrum, and after rejecting the 2025 budget plans that were reduced for the year 2025, The government was expelled in a vote of confidence in December.
A new government during the era of Prime Minister Francois Bayro It was placed in place In December, thanks to both the right -wing National Rally and the Socialist Party, they refuse to support the proposal, They survived the confidence that brought the far left earlier in January.
However, the 2025 budget has not yet been passed, and Bayro has already been forced to make concessions to the left to mobilize support for his financial plans, by reopening it Spinal discussion on retirement pensions repair Approval of additional spending and the creation of jobs in the health and education sectors.
Analysts say that the Bayro government has a better opportunity to get the 2025 budget through Parliament, although the talks are close to collapse this week.
“The chances of Bayro to pass the deficit budget in 2025 have been greatly strengthened thanks to a series of political and financial privileges for the Socialists in the National Assembly,” said Mujtaba Al -Rahman, the administrative director of Europe at the Eurasia Group, in the comments via e -mail on Monday.
Al -Rahman added: “(He) is now in a good position to solve the short -term budget crisis by France by the end of next month or early March.”
However, the support of the socialists of a deal is far from strong, as budget discussions are considered close to the collapse on Wednesday as officials from the left left party They commented their participation in the talks in protest against Bayro's comments on immigration.
Even if the talks are resumed, the government may lack a 5.4 % deficit goal this year.
Al -Rahman said: “We believe that (Bayro) now has a good opportunity to succeed, but the final text of the budget may lack even its low ambition by 5.4 % of the gross domestic product deficit this year.”
