The deputies began the examination of the revenue section of the state budget for 2025 on Monday, which includes 60 billion euros in savings. The government is looking to pass the budget without a vote through Article 49.3 of the Constitution due to a lack of majority support in the Assembly. This marks a crucial period for Prime Minister Michel Barnier’s government, backed by a fragile majority of The Republicans and facing the threat of a no-confidence vote from the National Rally party.
Despite being rejected in the finance committee, the budget text was reintroduced in its original form in the plenary session. The government’s initial proposal was heavily modified in committee, with 60 billion euros in new tax revenue voted on, according to committee president Eric Coquerel. Minister of Economy Antoine Armand argued for a budget that would reduce the public deficit to 5% of GDP in 2025, rejecting any austerity measures and proposing a 0.4% increase in public spending.
Minister of the Budget Laurent Saint-Martin defended the government’s proposed measures, including a controversial increase in the automobile tax, against accusations of excessive taxation. The New Popular Front deputies advocated for a significant increase in the tax burden, particularly targeting the wealthy, to address the budget deficit. The Socialist Party criticized the government for its perceived arrogance and responsibility for a 50 billion euro budget shortfall.
Green Party lawmaker Eva Sas accused the government of sacrificing the environmental budget with a 17% decrease in funding for the transition to green energy. The right-wing Republican party supported a reduction in public spending to address the unprecedented degradation of public finances. The National Rally leader Marine Le Pen was scheduled to speak on Tuesday during the budget debate.
As debates continue in the Assembly, Finance Minister Antoine Armand announced plans to review public spending and reduce it by at least 5 billion euros by 2027. The budget discussions are set to run until Friday midnight, with nearly 3,700 amendments filed. The government may resort to Article 49.3 of the Constitution to pass the budget in case a majority vote seems unlikely.
On the sidelines of the budget debates, discussions on the Social Security budget began in the social affairs committee, sparking heated debates on retirement reform. Minister of Parliamentary Relations Nathalie Delattre hinted at the possibility of using Article 49.3 to pass the budget if consensus cannot be reached. The government is aiming to build cohesion within the coalition and navigate the challenges of budget approval in the coming days.
