France Seeks EU Deadline Extension Amid Budget Deficit Crisis

France has requested the European Commission to extend the deadline for submitting its budget plan. The country's budget deficit could significantly rise if new savings are not identified. The incoming Prime Minister, Michel Barnier, faces challenges in addressing the financial crisis and potential no-confidence vote in the parliament.

France has requested the European Commission to extend the deadline beyond September 20 for submitting its plan to reduce its public deficit, aligning with its 2025 draft budget, La Tribune du Dimanche reported, citing the Finance Ministry.

France's budget deficit could unexpectedly increase this year and next if additional savings are not made, the Finance Ministry noted in a letter to lawmakers. The deteriorating financial situation has resulted in EU disciplinary action and posed challenges for incoming Prime Minister Michel Barnier, who needs to form a new government and prepare a budget by October 1 under the threat of a no-confidence vote.

"France has asked for such an extension," the Finance Ministry stated in La Tribune, while not detailing the requested extension period. The ministry emphasized the need to ensure the coherence of the plan and the 2025 draft budget. The European Commission's spokesperson acknowledged the possibility of extending the deadline by a reasonable period but could not confirm if a formal request had been received.

The budget shortfall presents Barnier's new government with difficult choices between spending cuts and tax hikes or risking credibility with the EU and financial markets. Following a two-month search, President Macron appointed the 73-year-old Barnier, a conservative and former Brexit negotiator, as the new prime minister. Barnier noted the challenge of restoring order to France's finances amid a potentially unstable political environment.

The leftist New Popular Front (NFP) alliance and the far-right National Rally (RN) hold a majority in parliament, capable of ousting the prime minister through a no-confidence vote if they collaborate. RN leader Marine Le Pen stated that her party expects Barnier to consider the 11 million people who voted for it, warning that they would not hesitate to oppose the government if their demands are not met.

(With inputs from agencies.)