French Senate Clears 2025 Budget Amid Political Turmoil

The French Senate passed the 2025 budget, aiming to reduce the deficit. The budget awaits constitutional council approval before President Macron can sign it. This follows political turmoil that saw the previous government fall and markets shaken. It focuses on trimming spending and raising taxes on wealthy entities.

On Thursday, the French Senate approved the nation's 2025 budget, moving the legislation to the constitutional council for review before President Emmanuel Macron can officially sign it into law. The move is set to conclude a political crisis that resulted in the collapse of the previous government and unsettled financial markets.

The newly approved budget seeks to decrease the national deficit by curbing government spending and imposing higher taxes on wealthy individuals and corporations. Prime Minister Francois Bayrou utilized special constitutional powers to enforce the budget, after the previous government's unsuccessful attempt in 2024 and extended negotiations with various political factions.

"There is not a second to lose," stated Senator Jean-Francois Husson, representing the team of legislators who finalized the budget. In December, lawmakers had passed emergency measures to keep the government's essential operations functioning and preempt a government shutdown similar to that in the United States. Despite this achievement, preparations for the 2026 budget are already on the agenda.