Pressure intensifies on France's newly appointed Prime Minister by Socialist forces
France is grappling with a political crisis and rising public unrest as the country faces a series of challenges, including a downgrade in its creditworthiness by the US rating agency Fitch. This marks the lowest rating ever for France, a stark reflection of the country's economic woes.
The root of the problem lies in France's burgeoning debt, with the debt-to-GDP ratio reaching an alarming 114 percent. This high debt level, coupled with political instability, has prompted Fitch to downgrade France's credit rating.
The nation's economic struggles have not gone unnoticed by the general public. Demonstrators are taking to the streets, demanding higher wages, better pensions, and improved public services. The protests, scheduled to take place this Thursday, are expected to draw up to 800,000 participants, a clear indication of the growing discontent among the French populace.
The political crisis in France is not confined to economic issues alone. The recent resignation of François Bayrou, a close ally of President Emmanuel Macron, over his plan for cuts amounting to 44 billion euros, has further complicated the situation. His resignation led to the appointment of Sébastien Lecornu as the fifth prime minister in less than two years.
Lecornu's tenure is fraught with challenges. He must not only preserve Macron's political legacy but also keep the conservative Republicans on board. Meanwhile, the Socialists are urging for significant changes in Lecornu's proposals. They are calling for the halving of the savings proposed by Lecornu's predecessor François Bayrou and the withdrawal of Macron's unpopular pension reform.
The Socialists are also advocating for the introduction of a new wealth tax. A survey indicates that 86 percent of French people support this measure, and the Socialists are proposing exceptions for startups like the French AI company Mistral AI. However, this proposal has been met with opposition from some quarters, adding to the complexity of the situation.
The political group behind this proposal, represented by Philippe Brun, argues that startups like Mistral AI should be exempt from the wealth tax to encourage innovation and growth. This is a contentious issue, with the government yet to make a clear commitment on the matter.
As France navigates through this tumultuous period, it remains to be seen how Lecornu will steer the country towards a more stable economic future while addressing the demands of the demonstrators and the opposition parties. One thing is certain: the next few weeks will be crucial in shaping France's economic and political landscape.
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