Budget Battles: Immigration Comments Shake French Government Foundations

The French budget negotiations are at risk following Prime Minister Francois Bayrou's controversial immigration remarks. The comments led to a Socialist walkout, jeopardizing the 2025 budget bill. While the Socialists suggest talks may resume, Bayrou's government faces mounting pressure, with potential no-confidence votes looming amid investor concerns.

Budget talks in France nearly collapsed after Prime Minister Francois Bayrou's remarks on immigration sparked a backlash from the Socialist party. His comments, which resonated with the far-right National Rally, saw the Socialists boycotting discussions, threatening the budget bill's passage vital for government stability.

The Socialists withdrew from negotiations, putting the 2025 budget bill at risk. The bill is in its final stages, with a crucial meeting among senators and parliamentarians imminent. While officials assert that discussions could resume if Bayrou retracts his remarks, the premier seems unwilling to do so, intensifying pressures.

The government's hopes concerning the Socialists abstaining in a no-confidence motion are at stake. Bayrou, unlike his predecessor Michel Barnier, aims to maintain Socialist support despite immigration-related disputes. His administration remains under scrutiny as it grapples with passing essential budgetary reforms.

(With inputs from agencies.)