France's Budgetary Uncertainty Escalates Post-Government Collapse

The fall of France's government has left the country without a clear strategy to address its budget deficit. Standard and Poor's highlights the challenges in passing a budget by the December 21 deadline, emphasizing the unlikely passage of the 2025 budget plan with significant budgetary consolidation efforts.

The collapse of the French government has plunged the nation into budgetary chaos, as highlighted by Standard and Poor's (S&P) in its recent statements. With a looming deadline to pass the budget, the path forward remains uncertain.

S&P Global Ratings has indicated that with less than four weeks left in the year—especially considering the December 21 budget deadline—the chances of formalizing an amended 2025 budget plan by end-2024 are minimal. These time constraints compound the complexities of forming a new government.

The credit agency further emphasizes that, under most potential scenarios, significant budgetary consolidation measures expected from the former government's proposed new taxes are unlikely to be realized.

(With inputs from agencies.)