PARIS — The French government successfully navigated a no-confidence vote on Wednesday, culminating in the approval of the nation’s 2025 budget. This decision has alleviated some of the instability affecting one of the world’s major economies, a situation that had raised concerns among investors and impacted the 20-member eurozone.
Despite lacking a parliamentary majority, Prime Minister François Bayrou utilized special constitutional provisions to pass the budget bill without the need for a legislative vote, which consequently prompted the no-confidence action. Ultimately, only 128 lawmakers supported the motion, significantly short of the 289 votes required to pass it. Notably, both the Socialist Party and the far-right National Rally declined to back the no-confidence vote. According to France’s constitutional rules, the rejection of the motion means that the 2025 budget is now automatically enacted into law.
Since President Emmanuel Macron called for snap elections last year, the political landscape in France has been turbulent, with no single party achieving a parliamentary majority. Bayrou, a veteran centrist, was appointed in December to address a political crisis stemming from budget-related disputes that had led to the resignation of his predecessor.
The budget’s approval is a reassuring development for France and the broader European community. The country has faced mounting pressure from the European Union to tackle its substantial debt and deficit, which reached 6.1% of GDP in 2024.
Bayrou defended the necessity of having an operating budget during a challenging time, pointing out the potential repercussions of U.S. tariffs on EU goods and the escalating assertiveness of Russia in Ukraine. He acknowledged the budget’s imperfections, emphasizing its crucial role by stating, “Our country cannot function without a budget.”
The financial plan aims to trim France’s deficit to 5.4% of its GDP this year, with measures including spending reductions and tax hikes amounting to a total of 50 billion euros. In negotiations aimed at securing parliamentary support, Bayrou agreed to allocate an extra 1 billion euros for hospitals and assured no layoffs of 4,000 positions within the national education sector. Additionally, he expressed willingness last month to revisit plans to raise the retirement age from 62 to 64, a controversial topic in current discussions.
The government also announced its intention to invoke special powers next week to approve the social security budget, enabling essential financial reforms to be implemented promptly.
This event marks a political victory for Bayrou, especially in contrast to December when a no-confidence motion forced the resignation of conservative Prime Minister Michel Barnier, who had united opposition forces against him. Barnier was appointed to address the political
