On November 12, 2024, French MPs rejected a highly modified 2025 budget draft, which included substantial new taxes proposed by opposition parties. Facing pressure to manage national debt, Prime Minister Michel Barnier’s government plans to revise and resubmit a budget draft to the Senate. This rejection reflects divisions within the French Parliament on fiscal approaches amid rising debt concerns.

BulletsIn

• MPs voted 362-192 against the amended budget draft.
• The opposition’s amendments aimed to increase revenue through new taxes.
• Original budget proposed by PM Barnier included €40 billion in spending cuts and €20 billion in new taxes.
• Opposition added amendments raising tax revenue to €75 billion, which the government rejected.
• Rejection primarily due to concerns over harsh tax hikes and risks to France’s EU commitments.
• The lower house divided across three blocs: left alliance, centrists, and far-right National Rally.
• French President Macron supports Barnier’s attempts to restore financial stability amid debt.
• France’s debt burden remains one of the largest expenses, costing €50 billion annually.
• Failure to pass the budget draft raises concerns over possible credit rating downgrades.
• Government now plans to present a revised budget to the Senate before further negotiations.