Debt Crisis Looms: French PM Michel Barnier's Battle in Divided Parliament

In his inaugural parliamentary address, French Prime Minister Michel Barnier emphasized the critical need to address France's soaring debt. He outlined plans for spending cuts and tax increases, prioritizing France's financial stability. Barnier's minority government faces significant opposition, setting the stage for turbulent months ahead.

French Prime Minister Michel Barnier, in his inaugural address to parliament, cautioned that France's immense and escalating debt serves as a "sword of Damocles" over the nation's finances. He declared immediate tax hikes and spending reductions to counter the financial peril.

Barnier's address commenced the parliamentary session, which is expected to be turbulent following inconclusive elections that left France's National Assembly fragmented and without a clear majority. Opposition lawmakers, particularly from left-wing factions, were vocal and confrontational, making Barnier's prospects for smooth governance uncertain.

The Prime Minister, stressing the urgency of tackling debt, introduced an "exceptional" tax on the nation's wealthiest and sought a "contributory effort" from large, profitable enterprises. At odds with President Macron's usual fiscal approach of tax reductions, these measures reflect Barnier's strategy to stabilize France's economy under the new political dynamics.

(With inputs from agencies.)