French Budget Deficit Plans in Jeopardy Amid Political Uncertainty
French Finance Minister Eric Lombard warned that the government may need to compromise on its budget deficit reduction plans if Prime Minister Francois Bayrou is ousted in an upcoming confidence vote. With deficit reduction goals under threat, new negotiations and political maneuvers could reshape fiscal strategies.
French Finance Minister Eric Lombard has indicated that the government might be forced to adjust its plans to slash the budget deficit if Prime Minister Francois Bayrou loses the confidence vote scheduled for September 8, according to a report by the Financial Times.
In a candid interview, Lombard acknowledged that the administration would need to make concessions to left-wing parties to modify the fiscal strategy should Bayrou's government collapse. The current fiscal blueprint aims to lower the budget deficit from 5.4% to 4.6% of GDP by next year, through a rigorous savings drive of almost 44 billion euros, which opposition parties currently oppose.
If Bayrou fails to secure the vote, President Emmanuel Macron has several options: appointing a new prime minister, allowing Bayrou to remain temporarily, or initiating new parliamentary elections, a route he has previously dismissed.
(With inputs from agencies.)
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