Bayrou's Budget Balancing Act: Left's Support Sought amid Pension Reform Tug-of-War

French Prime Minister Francois Bayrou aims to garner support from the left for the 2025 budget by potentially softening pension reforms. Political instability looms as concessions could upset conservative allies and investors, while socialist backing is uncertain amidst fragmented parliamentary dynamics.

French Prime Minister Francois Bayrou is navigating tumultuous political waters, eyeing leftist backing for the 2025 budget by potentially easing pension reforms. This strategy seeks to secure allies post a destabilizing year, following Macron's snap elections which dissolved his parliamentary majority.

The government's maneuver aims to placate the Socialists, who, disgruntled over past budget proposals, demand pension reform reversals as a condition for their backing. However, Bayrou's concessions have stirred unease among conservatives and centrists, posing risks to his administration's stability.

The political and economic stakes are high. While attempts to broker a deal continue, the possibility of unsettling financial markets and angering conservative factions looms large, highlighting France's fragile governing landscape post-early elections.

(With inputs from agencies.)