Francois Bayrou's Bold Budget: France Faces Fiscal Future
French Prime Minister Francois Bayrou will present a 40 billion-euro budget cut to address France's financial crisis. With President Macron's previous parliamentary efforts stalling, Bayrou faces political resistance from opposition parties concerned about the impact of spending freezes and tax cap measures on welfare and citizens.
French Prime Minister Francois Bayrou is set to unveil a substantial 40 billion-euro budget cut on Tuesday. The move comes amid threats from opposition parties to challenge his minority government should the proposed savings be deemed too severe.
Tasked by President Emmanuel Macron to repair France's financial health, Bayrou is navigating a delicate political landscape following a previous legislative impasse over spending. While defense will receive increased funding, most social benefits are expected to be frozen, with tax breaks likely to be capped.
Bayrou, a seasoned centrist, must garner enough support to prevent another no-confidence motion, similar to the one that ousted his predecessor. The financial plans aim to reduce the budget deficit from 5.4% of GDP this year to 4.6% in 2025, aligning with EU fiscal targets.
(With inputs from agencies.)
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