France’s government survived a no-confidence vote as the country’s 2025 budget was approved, easing concerns in one of the world’s largest economies. Despite lacking a parliamentary majority, Prime Minister François Bayrou used constitutional powers to push the budget through, avoiding a crisis. The failure of the no-confidence motion automatically turned the budget into law, providing stability.
President Emmanuel Macron’s snap elections last year left France in political disarray, with Bayrou stepping in to address budget disputes that led to his predecessor’s downfall. The approved budget aims to reduce the country’s deficit to 5.4% of GDP with spending cuts and tax increases totaling 50 billion euros. Bayrou also made concessions, including additional funding for hospitals and a commitment not to cut 4,000 jobs in education.
The government’s success in passing the budget is seen as a political victory for Bayrou, who was appointed to navigate the turbulent political landscape. His negotiations with opposition parties, notably the Socialists, helped secure the budget’s approval. In the face of external pressures, such as threats of tariffs from the US and tensions with Russia, the government’s ability to pass the budget is viewed as a positive development for both France and Europe.
The next step for the government is to pass the social security budget using special powers to implement key financial measures. Despite initial challenges, the approval of the 2025 budget signifies a step towards financial stability and economic recovery in France.
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