Outgoing Budget Minister Laurent Saint-Martin welcomed what he called “an essential text to respond to the emergency and guarantee the continuity of the life of the Nation.”
Earlier this month, the far-right National Rally and the pan-left New Popular Front coalition joined forces to topple the outgoing government led by Michel Barnier. As a result, Barnier’s budget for 2025 was also rejected, leaving France without a budget law just a few days before an end-of-year deadline.
New Prime Minister François Bayrou has to come up with a new budget, which is expected at the beginning of next year.
France’s deficit reached 6.2 percent of the country’s gross domestic product this year, twice the level permitted under European Union rules, and the country is already under an EU excessive deficit procedure for overspending last year. Last week, France’s credit rating was downgraded by Moody’s ratings agency.
