The pedestrian crossed the flooded street after heavy rains in Paris on October 17, 2024.
Joel Saget | AFP | Getty Images
France’s economy slightly decreased in the fourth quarter, the Flash data showed on Thursday, emphasizing the urgent need for overwhelmed French legislators to overcome their differences and agree on the 2025 budget.
The economy recorded 0.1% contraction in the fourth quarter in the previous three months, and the Insee Statistics Agency discovered on Thursday, which is a growth of 0.4% in the third quarter of 2024. The economists that Reuters surveyed expected growth would be growth.
French relaxed economy got an incentive Olympic Games in Paris Last summer, but since then there has been a political turnaround, leaving fiscal challenges – namely, a French large budget deficit and a growing bunch of debt – unresolved.
Political path and economic uncertainty have experienced Paris since parliamentary elections in June and July. Both the ultimate left and far right achieved well in the appropriate circles of the vote, which encouraged the Wrangglings at the National Assembly over who should manage. In the end, President Emmanuel Macron installed a conservative government in Septemberalienation of political fractions on the left and right.
Relying on the far right for support, the Central Government of the then Minister Michel Barnier was vulnerable to the challenges on both sides of the political spectrum and after budget plans were rejected to reduce the 2025 deficit, The government was overthrown in December by voting without trust.
New Government under Prime Minister François Bayrou has been placed in place In December and thanks to the extreme right of national rally and the socialist party who refused to support the proposal, Survived the voice of trust brought by the ultimate left earlier in January.
However, the budget 2025 has yet to be adopted, and Bayrou was already forced to enter the left to obtain support for his fiscal plans, re -opening A thorny discussion on a pension reform and agreeing to additional consumption and job creation in the health and educational sector.
Analysts say Bayrou’s government has a greater chance that he gets a budget of 2025 through Parliament, although the conversations have approached the demolition this week.
“The chances of François Bayrou to adopt a budget for reducing deficit 2025 were significantly strengthened thanks to a series of political and financial concessions to the Socialists in the National Assembly,” said Mujtaba Rahman, European CEO in Eurasia Group on Monday.
“[He] He is now in a good position to solve the short -term budget crisis of France by the end of the next or early March, “Rahman added.
Socialist Support to deal is far from solid, given that on Wednesday the budget discussions look close to demolition as an official of the left side party party They suspended their participation in conversations in protest due to Bayrou’s remarks on immigration.
Even if the conversations are continued, it is probably that the Government will lack its ambitions to hit the target budget deficit of 5.4%this year.
“We believe he is [Bayrou] He now has a good chance of success, but the final budget text can even fall even reduced ambitions of 5.4% of GDP deficits this year, “Rahman said.
