New Prime Minister Michel Barnier, appointed on Thursday, is busy forming a government and has been tasked with presenting a budget by October 1. However, Barnier, who also faces a vote of no confidence in parliament, said he would not be able to perform miracles but his aim was to restore order to France’s finances.
The extension requested by France, although the time period is not specified, is to ensure that the deficit reduction plan is balanced with the draft budget for 2025. The current deadline of 20 September can be extended to 15 October by mutual consent.
Barnier’s government will have to make tough decisions, including spending cuts and possible tax increases, to maintain its credibility with France’s European Union partners and financial markets. The prime minister’s path is being made difficult by his New Popular Front (NFP) and far-right National Rally (RN) alliance, which hold a parliamentary majority and could topple him with a vote of no confidence if they choose to cooperate.
The RN has positioned itself as a key force in the survival of the new government by giving Barnier its standard-bearing endorsement. RN leader Marine Le Pen said her party would not hesitate to vote against the government if the interests of the 11 million RN voters were not respected or if the French were treated badly in the coming weeks.
The Chancellor of the Exchequer and the European Commission made no immediate comment. Barnier continues his consultations today, trying to form a government amid the complexities of the political landscape and the looming threat of a vote of no confidence.
Reuters contributed to this report.
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