France's new government in crisis mode: budget debate and mistrust!

France's new government in crisis mode: budget debate and mistrust!

France faces a politically turbulent week as Prime Minister Sébastien Lecornu's newly appointed government must respond to a series of challenges. The cabinet was appointed on Sunday evening, and right from the start there is a hot topic waiting: the heavily indebted country's budget must be drawn up. The financial conditions are tense. At 114 percent, France has the third highest debt ratio in the EU, just behind Greece and Italy, which doesn't make the situation any easier. In addition, government spending is among the highest in Europe, which makes the need for a well-thought-out austerity plan all the more urgent, as Antenne Unna reports.

Particularly explosive is the danger of a vote of no confidence, announced this week by the left-wing party La France Insoumise (LFI) and the right-wing Rassemblement National (RN). The success of this application could largely depend on Lecornu's government declaration. Lecornu originally wanted to submit his budget draft to parliament on Monday. However, this requires a prior cabinet meeting, which cannot take place until Tuesday due to President Macron's trip to the Gaza summit in Egypt. If the government fails to present a sustainable budget, France could end up without an approved budget at the end of the year, which would further shake up the political landscape.

High tension in the National Assembly

The political situation in the National Assembly is tense. Lecornu has announced a transitional government to be able to present a budget before the end of the year, but remains true to a center-right profile. Although the Conservatives have decided to no longer participate in government, they are willing to support legislative proposals. However, this is happening under pressure from the opposition, which is further heating up with criticism of President Macron and the planned savings of 43.8 billion euros in the upcoming budget. These savings are also the reason why former Prime Minister François Bayrou wanted to ask a vote of confidence in parliament on September 8th, which shows how precarious the government's position is, as Tagesschau highlights.

Lecornu's credibility depends to a large extent on his ability to manage this politically and economically sensitive situation. Several parties, including the RN, the LFI, the Greens and the Communists, have already announced that they will vote against the government. Bayrou could already repeat the experience of his predecessor Michel Barnier, who was ousted by a vote of no confidence at the end of 2024 after the government did not have its own majority in parliament.

Financial conditions and the resulting challenges

The financial situation in France remains a central issue. In 2024, public debt was around €3.3 trillion and the budget deficit is a worrying 5.8 percent of GDP. While Germany is doing much better with a debt ratio of over 62 percent, economists warn that German national debt could also rise in the future. [Deutschlandfunk](https://www.deutschlandfunk.de/frankreich- Debt Crisis-staatsfinanzen-eurozone-finanzunternehmen-100.html) emphasizes that the complex political landscape in France - characterized by three equal blocs in the National Assembly - makes it difficult to find solutions to the pressing debt problem.

Macron himself is not only facing criticism because of the budget situation, but especially because of the controversial pension reform, which envisages raising the retirement age from 62 to 64 years. This measure was intended to help address the deficit, but has caused discontent among many. The opposition has already sent clear signals that improvements are needed here too. It remains to be seen whether Lecornu and his cabinet can get the uncertainties circulating or whether new political turbulence is imminent.