Bayrou plans to use former Prime Minister Michel Barnier’s budget proposal as a starting point, even though Barnier’s government was ousted in December following a no-confidence vote over plans for 40 billion euros in spending cuts and 20 billion euros in tax increases. .
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French Prime Minister François Bayrou is pressing ahead with his predecessor’s fiscal blueprint despite a controversial legacy, under pressure to implement the national budget after the collapse of his controversial government.
Bayrou uses former Prime Minister Michel Barnier’s budget proposal as a starting point, even though Barnier’s government was sacked in December following a vote of no confidence over plans for 40 billion euros in spending cuts and 20 billion euros in tax increases. I plan to. As a result of this financial collapse, France was left without a fixed budget for the first time in modern history.
Politico cited several Treasury Department officials as saying the move should be seen as a time-saving measure rather than an endorsement of Barnier’s budget.
Drafting a new plan from scratch would require a lengthy legal process, delaying the passage of the 2025 budget. Bayrou set a mid-February deadline for passage.
temporary fix
Meanwhile, lawmakers approved a stopgap measure to roll over the 2024 budget into 2025. Its purpose was to prevent a government shutdown.
But this temporary solution has flaws, including no inflation adjustment for tax brackets, which could lead to tax increases for hundreds of thousands of households.
Prime Minister Bayrou faces a tough road ahead as his minority government is vulnerable to another no-confidence vote. An opposition party united to oust Mr. Barnier could pose a similar threat to Mr. Bayrou.
ask for a compromise
Bairou and his deputy budget secretary, Amélie de Montchalin, are in contact with opposition parties to try to negotiate a compromise or reach an agreement to avoid further political turmoil.
They will meet with all parliamentary parties before Mr Baillou delivers his first policy speech on January 14th.
Building on Barnier’s budget would limit lawmakers to introducing amendments rather than completely new proposals, a restriction that could hamper negotiations. .
“They can tweak (the budget), but they can’t change it significantly…I’m not sure how they’re going to propose (a bill) that’s not likely to lead to a vote of no confidence.” Eric Cockerel said. The chairman of the Congressional Finance Committee told POLITICO.
