Standoff in French Government: Barnier Faces Budget Crisis

French Prime Minister Michel Barnier is under pressure to make budget concessions to avoid a no-confidence motion. National Rally lawmaker Marine Le Pen demands budget changes, including pension adjustments and scrapping tax increases. Failure to negotiate could lead to government collapse and political crisis.

French Prime Minister Michel Barnier finds himself at the brink of a political crisis, with potential budgetary concessions looming to evade a no-confidence motion that could dismantle his administration. National Rally leader Marine Le Pen has set a Monday deadline for Barnier to meet the National Rally's budget demands.

Le Pen insists the government avoid raising taxes on gas and curbing medication reimbursements while adjusting pensions to inflation. The standoff intensified as Barnier's government clings to securing support from the National Rally to avert a government collapse and maintain budget stability.

Looming uncertainties have unsettled France's debt and stocks, with Standard & Poor's maintaining the country's AA- rating but questioning its fiscal targets. Finance Minister Antoine Armand warns that should the budget crisis escalate, emergency laws may be enforced, impacting millions of French citizens financially.

(With inputs from agencies.)