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French Finance Minister Warns of IMF Risk if Bayrou Government Falls

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French Finance Minister Eric Lombard on Tuesday warned that France could face the risk of International Monetary Fund (IMF) intervention if Prime Minister Francois Bayrou’s minority government collapses next month. His remarks come amid mounting political uncertainty, with Bayrou set to face a crucial confidence vote on September 8 tied to his proposed sweeping budget cuts.

Bayrou’s government, which already lacks a parliamentary majority, appeared increasingly vulnerable after three main opposition parties announced they would not support the vote. The move significantly raises the likelihood of his administration being ousted, deepening financial and political instability.

“We are right in the thick of the battle,” Lombard told France Inter radio, stressing he was not resigned to a defeat. Acknowledging concerns voiced by other politicians, he said an IMF bailout is a “risk in front of us,” one the government is determined to avoid but cannot entirely rule out.

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French Finance Minister Confident on 2025 Budget Talks Amid Political Tensions

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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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