Bayrou’s Bold Budget Balancing Act: A 40 Billion-Euros Dilemma

French Prime Minister Francois Bayrou is poised to unveil a sweeping 40 billion-euro budget squeeze, amid concerns and warnings from opposition parties ready to challenge his minority government should the cuts prove too drastic. Tasked by President Emmanuel Macron, Bayrou aims to stabilize public finances through the 2026 budget following a legislative gridlock.

Bayrou, known for his fiscal conservatism, has signaled unavoidable sacrifices, though defense spending is slated for increase. The reduction plan likely involves freezing social benefits and capping certain tax breaks. His strategy will be scrutinized at a news conference, with opposition factions poised to resist welfare cuts and spending freezes.

The veteran centrist must navigate France's divided parliament to secure approval and avoid triggering another no-confidence vote, a fate that befell his predecessor. With interest payments swelling, market observers await Bayrou's ability to enact fiscal reforms without sparking another political upheaval.

(With inputs from agencies.)