The crisis in France threatens all of Europe. “But what crisis?” The government corresponds to
France's Minister Eric Lombard announced on Thursday at a meeting with the association of Employers Medef – the largest in France – that the country is not in danger of financial crisis. He assured that the budget deficit would fall, as expected, to 5.4 percent. GDP at the end of this year.
– I don't believe in financial crisis. The country is rich, develops, is managed – said the minister during an annual conference organized by Medef. It is attended by representatives of French enterprises. “We have no difficulties in financing our economy,” said the minister.
The day before, on Wednesday, business representatives said at a conference that the government crisis could threaten the economy.
Lombard convinced them that the budget deficit this year would amount to 5.4 percent. GDP, while in 2024 it was 5.8 percent. GDP. He emphasized that in the second quarter France recorded economic growth.
He assured that the restoration of ISF (solidarity tax on property), abolished in 2017, was excluded. At the same time, he admitted that because in the budget cuts project the government predicted the freezing of social benefits, it would be a problem in the light of democratic principles, if others did not bear the burden of budget cuts.
Entrepreneurs are worried that the government, which provides for cuts in the budget for 2026, will have to agree to certain opposition demands. Opposition parties threatened the vote of no confidence in the government when voting on the draft budget. Now it can accelerate and take place on September 8, because Prime Minister Francois Bayrou will ask the vote of trust that day in the parliament. The result promises to be negative for the government.
However, Lombard told entrepreneurs that “regardless of the result of voting, work on the budget will continue. – We have been working on it for many months, it is properly ready, it will be transferred to parliament at the beginning of October – said the minister.
The draft budget in which the government wants to get savings of around EUR 44 billion (mainly by cutting expenses), united against its opposition from the left and right, which considers it unfair, burdening the less prosperous part of society.
If the center -right government of Bayrou falls on September 8, President Emmanuel Macron may appoint another policy as a prime minister.
However, the situation is complicated by the fact that none of the main political forces has a majority in parliament and each subsequent government would also be a minority government.
From Paris Anna Wróbel
