Paris, Jan 30 (Reuters) - A group of French lawmakers gathered on Thursday to finalize the 2025 budget bill, crucial for rebuilding investor trust in the country's finances and the government's stability.
The panel, consisting of seven senators and seven members of parliament, convened in a closed-door session to negotiate a compromise before the bill goes to the lower house next week, potentially leading to a motion of no-confidence against the government.
The impasse over France's 2025 budget has unsettled investors and undermined business and consumer confidence. The government has had to make significant concessions to craft a bill capable of being approved.
Tensions escalated when Socialist party members briefly halted budget discussions to protest comments made by Prime Minister Francois Bayrou on immigration, with fears rising of a possible vote of no-confidence.
While the left-wing lacks the majority on the 14-member panel to veto a compromise, their stance could sway the balance against Prime Minister Bayrou in the lower house, where a no-confidence vote may occur as early as Wednesday.
Eric Coquerel, head of the Finance Commission of the National Assembly for the hard-left LFI party, indicated that a deal was likely during Thursday's talks due to the panel's power distribution, foreseeing the real battleground in the National Assembly next week.
"The motion of no-confidence will be the moment of truth," he remarked.
The upcoming actions of Socialist politicians are of paramount importance, with uncertainty surrounding their stance next week. Boris Vallaud, leader of Socialist lawmakers in the lower house, emphasized a constructive approach, stating, "We are solely concerned with the national interest."
While a panel agreement may be reached, Prime Minister Bayrou's position remains precarious. Constitutional means may be employed to push through the budget compromise, sparking the potential no-confidence motion.
If the Socialists choose to support the motion against Bayrou, he would rely on the support of Marine Le Pen’s far-right lawmakers. The outcome could hinge on whether Le Pen's party aligns with the Socialists in backing the motion.