👀 Ones to watch: Undervalued stocks to buy before they report Q3 earningsSee Undervalued Stocks

French far-right pressures Barnier with 'counter-budget' proposals

Published 10/16/2024, 10:01 AM
Updated 10/16/2024, 10:06 AM
© Reuters. FILE PHOTO: Jordan Bardella, President of the French far-right Rassemblement National (National Rally - RN) party looks on during a political rally in Nice, France, October 6, 2024. REUTERS/Manon Cruz/ File Photo

PARIS (Reuters) - France's far-right leader Jordan Bardella said on Wednesday his party's budget proposals must be taken on board, raising the risk that Prime Minister Michel Barnier's minority government might otherwise face a no-confidence vote that could topple it.

The government last week presented its 2025 budget with plans for 60 billion euros ($65.68 billion) worth of spending cuts and tax hikes on the wealthy and big companies to tackle a spiralling fiscal deficit.

But lacking a majority in the National Assembly, Barnier will likely need to use special constitutional powers to push through the bill without a vote, which is likely to trigger a no-confidence vote.

With the most seats, Bardella's Rassemblement National (RN) holds the balance of power in the lower house of parliament, which means Barnier's government needs their tacit support if a no-confidence vote is brought before lawmakers.

The RN presented on Wednesday its own "counter-budget", claiming its proposals would yield extra savings of 15 billion euros next year by cutting some social welfare payments for foreigners and increasing taxes on share buybacks and the wealthy, among other measures.

"If Mr Barnier persists in following (President) Emmanuel Macron's policy, then this government will fall," Bardella told reporters during a visit to the Paris car show, saying his party demanded an end to Macron's "catastrophic" fiscal policies.

© Reuters. FILE PHOTO: Jordan Bardella, President of the French far-right Rassemblement National (National Rally - RN) party looks on during a political rally in Nice, France, October 6, 2024. REUTERS/Manon Cruz/ File Photo

"Even before the question of a no-confidence vote arises, we intend to get as many of our measures adopted as possible, taking into account the social emergency and the difficulties our fellow citizens have in making ends meet, while at the same time making necessary savings," said Bardella.

Lawmakers were due to begin debating Barnier's high-stakes budget bill late on Wednesday in the lower house's finance committee with more than 1,700 amendments already proposed. The legislative process is likely to run until mid-December.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.