French Finance Minister Stands Firm Amid Confidence Vote Crisis

French Finance Minister Eric Lombard warned that the government might need to compromise on reducing the budget deficit if a confidence vote ousts Prime Minister Francois Bayrou on September 8, according to the Financial Times.

In an interview, Lombard stated, "It is inevitable," highlighting the potential necessity for renewed negotiations with the opposition to diminish the fiscal package's scale if the government falls. The current administration aims to trim the budget deficit from 5.4% to 4.6% of GDP.

Should Bayrou lose the vote, President Macron may select a new prime minister, allow Bayrou to remain temporarily, or call for snap elections. Lombard expressed confidence in managing France's deficits, dismissing fears of a looming debt crisis.

(With inputs from agencies.)