French Economy Minister Eric Lombard Faces Budget Challenges and Political Negotiations

Tasked with securing 50 billion euros in savings, Lombard navigates complex political alliances to pass a critical 2025 budget without raising taxes significantly.

• Eric Lombard, a former socialist and current Economy Minister, is leading efforts to secure political support for the 2025 budget, focusing on dialogue with left-leaning parties while maintaining centrist and right-wing backing.
• The 2025 budget aims to achieve 50 billion euros in savings, primarily through reductions in public spending rather than significant tax increases, as reiterated by Lombard and his team.
• Key measures under consideration include maintaining a surtax on airline tickets and introducing a system to tax corporate earnings preemptively, while appeasing left-wing demands for higher taxes on financial income and very high earners.
• Negotiations with socialist, green, and communist lawmakers are critical to securing abstentions or support during upcoming censure votes, with Lombard working to avoid reliance on the far-right National Rally party.
• The final budget plan, expected to be adopted by mid-February, will include compromises on labor policies and public sector cuts, as Lombard balances fiscal discipline with political pragmatism.

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Libération Le Figaro Le Journal du Dimanche