Prime Minister Michel Barnier is set to unveil the government's budget proposal for 2025, targeting 40 billion euros in savings and 20 billion euros in tax increases to reduce the public deficit from 6% to 5% of GDP.

France's national deficit for 2024 is projected to reach 6%, significantly exceeding the EU guideline of 3%, which has drawn pressure from the European Commission.

The country's accumulated debt currently stands at €3.228 trillion, posing a considerable threat to its economic stability.

Bruno Retailleau, the new Minister of the Interior, has stirred controversy by asserting that the rule of law is 'neither intangible nor sacred,' indicating a shift in approach to governance.

Retailleau expressed disappointment that a referendum on immigration is not feasible under the current constitutional framework, suggesting he would support constitutional changes to enable such a vote.

In addressing the ongoing housing shortage, Barnier emphasized that social housing should be a temporary solution, allowing landlords to adjust rents based on tenants' income.

Barnier's proposed measures may influence future negotiations regarding unemployment insurance and pension reforms, as he considers involving social partners more actively.

He confirmed the continuation of nuclear energy development and the expansion of renewable energy, aligning with President Macron's policies while expressing caution about wind energy.

The proposal for increases in the TICFE tax has met with mixed reactions, with concerns about its potential impact on low-income households and small businesses.

Barnier acknowledged the necessity of garnering support from various political figures to pass unpopular measures, such as delaying pension increases.

CFDT's Yvan Ricordeau noted that the union typically does not mobilize simply due to the start of a new school year, indicating a more strategic approach to protests.

Barnier recognized the risk of unpopularity in his decisions, emphasizing the need for responsible governance to avert a financial crisis similar to those faced by Italy and Britain.