Bayrou's Budget Battle: France's Debt Dilemma

French Prime Minister Francois Bayrou warns of financial peril as he unveils a 40 billion-euro cost-cutting budget to tackle the nation's soaring public debt. Opposition parties threaten government stability, while spending on defense is set to rise. Bayrou seeks parliamentary support amid economic challenges and political uncertainties.

French Prime Minister Francois Bayrou is sounding the alarm on the nation's escalating public debt as he prepares to present a substantial 40 billion-euro budget cut plan. The budget is aimed at addressing financial instability; however, opposition parties are already threatening to destabilize his minority government. Despite ongoing economic challenges, defense expenditure is projected to see an increase in the coming year.

Bayrou, a long-time advocate for fiscal prudence, has drawn parallels to Greece's past debt crisis, emphasizing urgent action to prevent similar turmoil in France. He insists that broad sacrifices are necessary to curtail public expenditure, warning that without intervention, the country risks a severe financial downturn.

Increased political tensions are palpable, given the fractured nature of France's parliament, as Bayrou attempts to garner support for his contentious economic measures. Any failure to secure backing may ignite another political crisis, affecting economic ratings and interest costs. President Macron has discouraged further no-confidence motions to ensure timely defense budget allocations.

(With inputs from agencies.)