Pressure mounts on the new French government as socialists demand substantial budget compromises
The French government has a new leader as Sébastien Lecornu was appointed as the fifth prime minister by President Emmanuel Macron following the ousting of François Bayrou over budget plans. Lecornu's task is a daunting one, as he faces major constraints, including preserving Macron's legacy and maintaining the support of conservative The Republicains (LR).
The political landscape in France is tense, with the Socialist Party pressing for major budget concessions from the new prime minister. Olivier Faure, the Socialist Party leader, met with Lecornu to discuss these demands, which include scrapping Macron's unpopular pension changes, introducing a new wealth tax, and halving the savings proposed by Bayrou for 2026.
After the meeting, Faure stated that Lecornu had not given away any details about his plans. However, the Socialists are open to compromises, but face a tough, delicate balancing act to avoid worsening the political crisis and potentially triggering snap parliamentary elections.
The country is under pressure to lower a budget deficit that stands at nearly double the European Union's 3% ceiling. France has a debt pile equivalent to 114% of its gross domestic product (GDP). The Socialist Party's demands include an end to harsh budget cuts, fair contributions from the wealthiest, and increased purchasing power.
Unions and left-wing groups plan nationwide protests on Thursday, demanding action on the budget, wages, pensions, and public services. Up to 800,000 people are expected to participate in the strikes and protests, according to an Interior Ministry source.
Meanwhile, French startup Mistral AI could be exempted from the proposed wealth tax, according to government officials, to help them grow. The move is seen as a strategic decision to boost the country's tech sector.
The political crisis in France continues, with no clear resolution in sight. Lecornu needs cross-party backing to pass laws and manage the country's budget deficit and debt. The new prime minister will have to navigate these challenges carefully to ensure stability and progress for France.
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