French Budget Crisis: Immigration Remarks Jeopardize Government Stability

French budget talks faced collapse after Socialist officials protested Prime Minister Francois Bayrou's immigration remarks. The opposition threatens the budget bill's passage and the government's stability. While negotiations continue, failure to pass the budget could lead to a no-confidence vote, impacting government survival.

French budget negotiations are at risk as Socialist officials halted their involvement following Prime Minister Francois Bayrou's controversial comments on immigration. Bayrou's remarks have caused turmoil, as far-right lawmakers applaud but Socialists retreat, casting doubt on the budget's passage and the stability of Bayrou's administration.

Key budget talks progress as lawmakers work on finalizing the 2025 budget bill, but Socialist resistance at this crucial juncture threatens government continuity. Despite the stalemate, there remains hope for renewed discussions if Bayrou retracts his statement, though government officials insist the budget debate must proceed.

The ongoing uncertainty over the budget has unsettled investors and undermined public and business confidence. The government may resort to constitutional powers to bypass parliament, risking a no-confidence vote, while aiming to avoid the fate of Michel Barnier's administration. Socialists demand further concessions, including minimum wage hikes and green investments, to avert crisis.

(With inputs from agencies.)