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French PM Barnier Faces Fiscal Crisis Amid Political Turmoil

Michel Barnier's government grapples with deepening fiscal challenges and political instability as it seeks to pass the critical 2025 budget.

  • France's fiscal deficit is projected to exceed 6% of GDP, prompting Barnier to request an extension from the EU to meet deficit targets.
  • Barnier proposes tax hikes on large corporations and the wealthiest to address the deficit, risking division within his coalition.
  • Political tensions rise as Barnier's minority government struggles to secure enough votes in a fragmented National Assembly.
  • The French government's reliance on the far-right Rassemblement National adds complexity to the political landscape.
  • France's commitment to nuclear energy and trade disagreements with the EU could further strain relations with Brussels.
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