France's Financial Tightrope: The 2025 Budget Bill Debate

France is unveiling a contentious 2025 budget to address its soaring deficit, involving tax hikes and spending cuts. Prime Minister Michel Barnier's proposal faces significant opposition amid political fragmentation, challenging the government's stability amidst EU pressures and concerns over impacts on low-income groups.

France's government has introduced its 2025 budget proposal, which includes significant tax hikes and spending cuts, in an effort to address the nation's substantial deficit. The plans, described by Prime Minister Michel Barnier as crucial to avoid economic downfall, face staunch opposition and are set for heated debates in parliament.

France's deficit woes stem largely from high public spending tied to social programs, healthcare, and education, compounded by the economic impact of COVID-19. With the budget deficit projected to hit 6.1% of GDP this year, the government aims to reduce it to 5% next year, though meeting the euro zone's 3% target has been delayed to 2029.

This austerity approach faces criticism for potentially burdening low-income groups and small businesses, while political divisions could hinder progress. Barnier may resort to extraordinary measures to pass the budget, risking political turmoil if a no-confidence vote occurs.

(With inputs from agencies.)