French Senate Approves 2025 Budget Amid Political Crisis

The French Senate has approved the 2025 budget, allowing it to move to the constitutional council for review before it can be signed into law by President Emmanuel Macron. This budget aims to reduce the national deficit to 5.4% of GDP through significant spending cuts and tax increases, particularly targeting the wealthy and corporations. Prime Minister François Bayrou invoked special constitutional powers to push the budget through parliament without a vote, a move that has drawn criticism but ultimately allowed the government to survive no-confidence votes. The adoption of this budget comes after a political crisis that saw the previous government collapse, and it is expected to stabilize financial markets and assure the European Commission regarding France's public spending. Lawmakers had previously passed emergency measures to prevent a government shutdown while negotiating the budget. However, preparations for the 2026 budget will commence soon, highlighting the ongoing challenges the government faces.