French Lawmakers Reach Fragile Agreement on 2025 Budget

The compromise faces potential collapse as opposition parties weigh motions of censure and the government considers invoking Article 49.3.

• A joint committee of French deputies and senators agreed on a 2025 budget proposal after 24 hours of negotiations, with key compromises on spending and revenue measures.
• The budget includes a one-year 'contribution exceptionnelle' targeting large corporations, expected to generate €8 billion, and a temporary income tax increase for the wealthiest households.
• Cuts to the Aide Médicale d'État (AME) were reduced to €111 million, maintaining 2024 funding levels, but the decision has drawn criticism from both right-wing and left-wing parties.
• The proposal preserves 4,000 teaching positions previously slated for elimination and allocates an additional €300 million to ecological initiatives, though overall cuts remain significant.
• Prime Minister François Bayrou is likely to invoke Article 49.3 to bypass a parliamentary vote, which could trigger a motion of censure from both leftist and far-right opposition groups.

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