Bayrou Government Faces Budget Challenges in First Cabinet Meeting

The newly formed administration seeks to address economic instability and secure parliamentary support for a 2025 budget amid political divisions.

Prime Minister François Bayrou's government held its first Cabinet meeting on January 3, focusing on stabilizing the political and economic landscape.
The government aims to revise France's 2025 growth forecast to 0.8% and set a new deficit target of approximately 5.4% of GDP, higher than the previous administration's 5% goal.
Finance Minister Éric Lombard has initiated consultations with political parties to co-develop the budget, with key discussions scheduled before Bayrou's policy address to Parliament on January 14.
The absence of an approved budget has left France operating under a temporary 'special law,' limiting fiscal flexibility and delaying critical measures like tax adjustments and social spending.
Bayrou's government, lacking a parliamentary majority, faces significant opposition, with left-wing parties signaling potential censure motions if compromises are not reached.