Political Crisis Looms Over French Budget

The political landscape in France is increasingly volatile as Prime Minister Michel Barnier faces mounting pressure from the far-right National Rally (RN), led by Marine Le Pen, over the 2025 budget. The RN has rejected the government's budget proposals, demanding concessions on pension raises and medication reimbursements, leading to the possibility of a no-confidence vote that could topple Barnier's minority government. Despite Finance Minister Antoine Armand's willingness to negotiate, persistent demands from both the left and right threaten to escalate the situation, with markets reacting nervously to the potential instability. Le Pen, currently under legal scrutiny, is leveraging her party's influence to secure budgetary changes, indicating that failure to do so may result in political consequences. The government is also navigating a significant austerity plan aimed at addressing France's rising deficit while trying to maintain investor confidence amid fears of a ratings downgrade. With both sides at an impasse, the upcoming days are critical for Barnier's administration as it attempts to stabilize the budget and avoid a governmental collapse.