PM Michel Barnier Faces Budget Crisis Amid Rising Tensions and Political Fragmentation

September 18, 2024
PM Michel Barnier Faces Budget Crisis Amid Rising Tensions and Political Fragmentation
  • Marine Le Pen and the National Rally (RN) have positioned themselves as political arbiters following unexpected losses in the legislative elections, indicating a shift in their strategy.

  • The RN has stated they would support tax increases only if they target the wealthy and multinational superprofits, while easing the tax burden on the middle and lower classes.

  • The Republicans, now part of the majority, oppose tax increases and are focused on preventing public account deterioration to facilitate future tax cuts.

  • Gérald Darmanin defended the government's record on tax cuts over the past seven years, asserting that France's economic attractiveness should not be compromised.

  • Despite the challenges, Barnier's administration is working to change long-standing habits of presidential dominance, which may take time.

  • Before building his team, Barnier needs to deliver a general policy speech, which will be crucial for establishing his authority and direction.

  • Prime Minister Michel Barnier is navigating a challenging budget situation that has led to tensions within the Macronist group, suggesting potential tax increases.

  • In his efforts to maintain political balance, Barnier is preparing to unveil his government while emphasizing the need for more information to grasp the 'precise reality' of French public finances.

  • Barnier has promised a provisional version of the budget summary by the end of the week, although he plans to withhold certain budgetary documents from his predecessor, Gabriel Attal.

  • France has been in political limbo since the parliamentary elections in July, which resulted in a deadlock without a clear majority, complicating the current political landscape.

  • This absence of a clear majority in the Assembly may hinder the approval of the budget for 2025, adding to the urgency of Barnier's upcoming meetings.

  • On September 19, Barnier will meet with various political groups at Matignon, marking the conclusion of the consultation phase as he seeks to solidify support.

Summary based on 66 sources


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