Overview

• The French Senate approved the 2025 budget on Thursday, following its earlier passage in the National Assembly through the use of constitutional Article 49.3.
• Prime Minister François Bayrou's administration survived no-confidence votes triggered by the budget's forced adoption, with insufficient support from opposition parties to topple the government.
• The budget aims to reduce France's public deficit to 5.4% of GDP through €30 billion in spending cuts and €20 billion in tax increases targeting wealthier individuals and corporations.
• The political crisis over the budget had previously led to the collapse of Michel Barnier's government in December, prompting President Emmanuel Macron to appoint Bayrou as prime minister.
• The 2025 budget now awaits review by the Constitutional Council, with the government planning to use similar measures to pass the social security budget in the coming weeks.