PARIS (AP) — France's government survived a no-confidence vote Wednesday and the country's 2025 budget was finally adopted, easing some of the turmoil in one of the world's biggest economies that had worried investors and hurt the 20-country eurozone.
The government has no majority in parliament, and Prime Minister François Bayrou had used special constitutional powers to get the budget bill approved without a vote by lawmakers, which triggered the no-confidence motion.
Only 128 lawmakers approved the motion, far from the 289 votes — or half the National Assembly seats — needed for it to pass. Both the Socialists and far-right National Rally lawmakers refused to support it. Under France’s Constitution, the motion’s failure automatically turns the 2025 budget into law.
French politics have been in disarray since President Emmanuel Macron called snap elections last year that left no party with a parliamentary majority. Bayrou, a veteran centrist, was appointed in December amid a political crisis prompted by budget disputes that led to the collapse of his predecessor's government.
A reassuring move for France and Europe
France has been under pressure from the European Union to reduce its huge debt and deficit, which in 2024 reached 6.1% of GDP.
The government has argued the country needs an operational budget at a time when U.S. President Donald Trump is threatening new tariffs on the EU and Russia is growing more emboldened in Ukraine.
Bayrou acknowledged Wednesday an “imperfect budget” but said its adoption was an urgent step “because our country cannot live without a budget.”
A budget meant to reduce deficit
The budget is meant to reduce France’s deficit to 5.4% of gross domestic product this year, including through spending cuts and tax increases worth a total of 50 billion euros.
During discussions meant to seek a compromise in parliament, Bayrou agreed to provide an additional 1 billion euros for hospitals and committed not to cut 4,000 jobs in national education.
He also said last month he was open to renegotiating a contested plan to raise the retirement age from 62 to 64.
The government said it intends to use its special powers next week to pass the social security budget, allowing key financial measures to be implemented by the end of the month.
A political victory for Bayrou
In December, a no-confidence motion forced conservative Prime Minister Michel Barnier to resign as all opposition forces, from the hard-left to the far-right, joined to bring the government down.
Barnier had been named to solve the political impasse created by last year’s elections, but his proposed austerity budget deepened divisions. Macron tapped Bayrou in the hope he could bridge divides.
Unlike Barnier, Bayrou held intense negotiations with the Socialists aimed at reaching a non-aggression deal over the budget under which they would agree not to undercut each other.
In a parliament with no party dominant, all have leverage, and Bayrou needed to convince just one opposition group not to support the motion.
The Socialists said this week that “it’s time to give France a budget.”
Credit: AP
Credit: AP
Credit: AP
Credit: AP