France's Government Faces Potential Collapse Amid Budget Crisis

French Prime Minister Michel Barnier's government is under threat as the 2025 budget remains stalled in a divisive parliament. A no-confidence motion could topple the coalition by Christmas. Barnier's survival might depend on softening spending cuts, but political negotiations remain fluid.

The French government, led by Prime Minister Michel Barnier, is on the brink of collapse as it struggles to pass the 2025 budget through a divided parliament. The precarious situation could result in Barnier's coalition toppling by Christmas, if not sooner.

Failing to push the budget could lead Barnier to concede to demands for reduced spending cuts, which would further impact France's fragile public finances and potentially deter investors. The government is seeking to navigate intense negotiations to avoid another political crisis.

The budget proposal, crucial to addressing the national deficit through significant tax hikes and cuts, is currently stalled after being rejected by the lower house. A possible invocation of article 49.3 could force its adoption without a vote but risk triggering a no-confidence motion.

(With inputs from agencies.)