PARIS, Jan 31 (Reuters) - A panel of French lawmakers reached an agreement on Friday regarding the long-awaited 2025 budget proposal. This development sets the stage for the bill's passage in the lower house, a crucial move to bolster investor confidence and secure the government's continuity.
The bill is scheduled for a vote on the lower house floor next week, with lawmakers expressing optimism about the government's improved chances of withstanding any challenges, backed by potential support from the left and far-right.
The failure to finalize the 2025 budget has unsettled investors and undermined business and consumer confidence. The government had to make substantial concessions to craft a bill with a fighting chance of approval. The potential failure to pass the bill could likely cut short Bayrou's premiership.
Post-meeting, the Socialists struck a positive note, acknowledging they weren't entirely satisfied with the text but appreciative of the concessions that would benefit ordinary citizens.
Socialist lawmaker Boris Vallaud remarked, "This was not our budget; we are an opposition party, and we have made that clear. We have managed to mitigate the hardships affecting the purchasing power of retirees and patients."
Conservative Les Republicains (LR) deputy Philippe Juvin remarked, "The budget may not be ideal for anyone, but it's certainly better than no budget at all."
Finance Minister Eric Lombard reiterated the government's commitment to reducing the public sector deficit to 5.4% of Gross Domestic Product this year. He also highlighted the government's vulnerability to a potential vote of no confidence.
Lombard later expressed satisfaction with the budget agreement, labeling it as "a significant step towards providing us with a budget and moving our country forward."
Jean-Philippe Tanguy, representing the far-right National Rally party, voiced discontent after the agreement. While he didn't explicitly state his party's stance on a no-confidence vote, he acknowledged France's urgent need to finalize a budget.