Prime Minister Barnier Warns on France's Finances

French Prime Minister Michel Barnier has expressed deep concern over the country's precarious budgetary situation, describing it as 'very serious'. With France's public-sector deficit projected to reach 5.6% of GDP this year and exceeding 6% in 2025, Barnier emphasized the need for responsible actions beyond mere statements. He has indicated openness to tax increases to stabilize finances, a move that faces fierce opposition from allies of President Emmanuel Macron who advocate for no tax hikes. Barnier's government formation is hindered by divisions within the parliament, as he struggles to unite various political factions to address the financial crisis. As he prepares to submit a 2025 budget next month, the Prime Minister acknowledges the necessity of consensus while contending with conflicting party agendas. The Bank of France has also warned that a return to EU deficit rules by 2027 is unrealistic, complicating Barnier's efforts further.