Finance
France needs stability, says prime minister amid looming budget crisis
Published by Global Banking & Finance Review®
Posted on November 30, 2024
2 min readLast updated: January 28, 2026
Global Banking & Finance Review®
Company
Published by Global Banking & Finance Review®
Posted on November 30, 2024
2 min readLast updated: January 28, 2026
France's PM Barnier stresses stability amid budget crisis, facing opposition from far-right and far-left parties. Le Pen demands budget changes.
PARIS (Reuters) - Prime Minister Michel Barnier said on Friday that France needed stability, when asked about a possible 'ultimatum' given to him by Marine Le Pen's far-right National Rally party due to widespread opposition to his proposed budget.
Marine Le Pen is demanding changes to the 2025 budget and has given Barnier until Monday to accede to her demands before deciding whether to seek to topple the government.
"The only ultimatum that I hear is the one coming from workers, engineers, farmers who tell me: hold steady, we need stability in order to invest," Barnier told reporters during a visit to a plant in Limoges in central France.
"We need stability in order to borrow at reasonable rates."
Opposition to the budget from both far-left and far-right political parties could topple the government if it loses a no-confidence motion, while moves to reduce the 60 billion euros ($63 billion) in savings contained in the budget could also spook investors fretting about France's spiralling deficit.
Those opposed to the budget say they are against public spending cuts which could affect key services, and are against changes to the pension system. Barnier's government says the changes are needed to cut France's deficit.
During a TV interview earlier this week, Barnier said the current situation was "extremely concerning," predicting "extremely serious and turbulent conditions on financial markets" should his government fall.
($1 = 0.9476 euros)
(Reporting by Dominique Vidalon; Editing by Sudip Kar-Gupta, William Maclean)
The main topic is France's budget crisis and the need for stability as emphasized by Prime Minister Michel Barnier.
The budget faces opposition from both far-right and far-left political parties in France.
If the government falls, it could lead to serious and turbulent conditions on financial markets.
Explore more articles in the Finance category
