France on Edge: Bayrou's Pension Deal in Balance Amid Budget Talks

French Prime Minister Francois Bayrou seeks to compromise on pension reforms to gain Socialist support for the 2025 budget after losing a parliamentary majority. Negotiations intensify amid fear of alienating conservative factions and market apprehension over potential fiscal impacts.

French Prime Minister Francois Bayrou is poised to present a crucial speech this Tuesday, offering a potential compromise on pension reforms to secure support from leftist parties for the 2025 budget.

Following a tumultuous year marked by President Emmanuel Macron's call for early elections and ensuing loss of parliamentary majority, Bayrou's fresh administration faces the challenge of uniting fragmented political forces.

With ongoing negotiations at the finance ministry between Finance Minister Eric Lombard and left-wing leaders seemingly bearing fruit, Socialist leader Olivier Faure remains cautiously optimistic about reaching a deal. Nonetheless, the prospect of concessions on pension reforms generates tension among conservatives and centrist lawmakers wary of fiscal repercussions.

(With inputs from agencies.)