The budget dispute puts France in a difficult financial situation. “Our situation is dangerous,” the head of the French Court of Auditors, Pierre Moscovici, said on Monday. There is a risk that the budget will be blocked in parliament. Prime Minister Michel Barnier is even threatened with destruction.
The right-wing national party Rassemblement National (RN) around prominent MP Marine Le Pen is likely to support a vote of no confidence against the government in the coming days, leader Jordan Bardella said – unless there is a “last-minute miracle”. .
Barnier leads a minority government based on the Ensemble party alliance, founded by President Emmanuel Macron and the Republicans. Barnier is dependent on votes from other parties for majorities in parliament.
The situation could come to a head as early as this Monday if Barnier uses his constitutional powers to push through a law to fund social security. This will likely result in a vote of no confidence from the left, which could bring down Barnier.
There is a gap of 60 million euros in the budget
Barnier must fill a gap in the budget of 60 billion euros. The latest developments have already caused great unrest on the financial markets. On Wednesday, French government bonds recorded the highest risk premium over German bonds since the 2012 eurozone debt crisis.
Despite the budget conflict, rating agency S&P left France’s credit rating at “AA-”. “We could downgrade France’s rating if the government fails to reduce its high budget deficits or if economic growth remains below our expectations for an extended period,” S&P warned at the same time.
Source: Krone
I am Ida Scott, a journalist and content author with a passion for uncovering the truth. I have been writing professionally for Today Times Live since 2020 and specialize in political news. My career began when I was just 17; I had already developed a knack for research and an eye for detail which made me stand out from my peers.
