France’s 2025 budget heralds a new era of austerity

Significance Amid pressure from the EU and financial markets to control France's public debt, the budget proposes to deliver some EUR60bn (USD65.5bn) in savings from a combination of tax increases and spending cuts. Plans to delay pension increases are particularly controversial. Barnier will need the tacit support of the far right to win parliamentary approval. Impacts France will probably have to continue with austerity budgets for several years. Ongoing political uncertainty and instability will damage investor confidence in France. Should the government survive the budget debates, it is likely to survive until July 2025 at least.