PM Michel Barnier Faces Budget Crisis Amid Rising Tensions and Political Fragmentation
September 18, 2024Marine 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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Sources
Yahoo News • Sep 18, 2024
Reports: New French premier clashes with Macron's centrist campYahoo News • Sep 18, 2024
French budgetary situation 'very serious': prime ministerFRANCE 24 • Sep 18, 2024
France's budgetary situation is 'very serious', new PM Barnier says