French Finance Minister Confident on 2025 Budget Talks Amid Political Tensions

French Finance Minister Eric Lombard expressed optimism on Friday regarding ongoing talks to pass the 2025 budget bill, emphasizing that negotiations were “on the right track” despite potential compromises still needed. Speaking to TF1 television, Lombard reaffirmed the government’s commitment to reducing the public sector deficit to 5.4% of GDP this year, down from nearly 6% last year, amid concerns over tax shortfalls and increased spending.

As lawmakers from the Senate and lower house continued closed-door discussions to finalize the much-delayed budget, Lombard acknowledged the risk of a possible no-confidence motion. Prime Minister Francois Bayrou is expected to invoke constitutional powers to push the budget through without a regular vote, a move likely to provoke backlash from opposition parties, including the far-left and potentially Marine Le Pen’s far-right RN party.

Jean-Philippe Tanguy, an RN lawmaker on the panel, criticized the draft budget for lacking significant spending cuts, calling it a “phantom budget.” He warned of mounting financial risks as France approaches February without an approved fiscal plan, noting that the rising cost of state debt has already increased by 8 billion euros. The uncertainty has rattled investor confidence and could have further consequences if no resolution is reached.

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