MNI: PBOC Net Injects CNY25.7 Bln via OMO Thursday

MNI: PBOC Sets Yuan Parity Higher At 7.1897 Thurs; -2.25% Y/Y

MNI: PBOC Net Drains CNY195.3 Bln via OMO Wednesday

MNI: PBOC Sets Yuan Parity Lower At 7.1868 Weds; -2.18% Y/Y

MNI: JAPAN NOV SERVICES PPI +3.0% Y/Y; OCT UNREV +2.9%

MNI China Daily Summary: Tuesday, December 24

MNI: US REDBOOK: DEC STORE SALES +5.0% V YR AGO MO

MNI: US DEC PHILADELPHIA FED NONMFG INDEX -6

EZ/UK Bond Supply Calendar: BOE APF Sales Due 6 January

MNI EXCLUSIVE: EU-Mercosur Deal Close, But Likely Short-Lived - Officials

AUSTRALIA: 2025 Election Outcome Looking More Uncertain According To Newspoll

© 1982-2024 MNI. All rights reserved.
Terms | Privacy
Log Out
Free Trial

EUROPEAN FISCAL: French Cabinet To Discuss Art 49.3 For Budget

EUROPEAN FISCAL
Homepagemarkets-real-timePolitical RiskPolitical Risk BulletCEEMEAEurozoneFranceGlobalBulletMarketsFixed Income BulletsForeign Exchange BulletsRegion

French gov't spox Maud Bregeon confirmed in an interview on France 2 that the Council of Ministers is set to meet today with the potential use of Art. 49.3 of the French constitution to push the budget through parliament without a vote on the agenda. Bregenon sought to emphasise that at this stage the discussions were a formality. Legally, before Art. 49.3 can be used, the Council of Ministers has to discuss and approve its implementation. The spox said that gaining ministerial approval would avoid the situation of a hastily convened meeting should the budget appear on course for defeat further down the line. 

  • Bregenon said that using Art 49.3 "is not the will of the Prime Minister, and we will let the debates take place as long as necessary".
  • Politically the budget sits in a very precarious position, being reliant on the actions of the far-right Rassembelement National. If the RN votes for the budget or abstains then it can pass. However, if the RN votes against it  then this would force the gov't to use Art 49.3.
  • The use of Art 49.3 risks societal and political pushback. Mass protests could erupt on the streets, and in the National Assembly using the article  brings forward the prospect of a no-confidence vote. The gov't would once again be reliant on RN support to remain in office, something that cannot be guaranteed.
  • A bullet looking at the potential timetable for the budget will follow shortly. 
243 words

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.

French gov't spox Maud Bregeon confirmed in an interview on France 2 that the Council of Ministers is set to meet today with the potential use of Art. 49.3 of the French constitution to push the budget through parliament without a vote on the agenda. Bregenon sought to emphasise that at this stage the discussions were a formality. Legally, before Art. 49.3 can be used, the Council of Ministers has to discuss and approve its implementation. The spox said that gaining ministerial approval would avoid the situation of a hastily convened meeting should the budget appear on course for defeat further down the line. 

  • Bregenon said that using Art 49.3 "is not the will of the Prime Minister, and we will let the debates take place as long as necessary".
  • Politically the budget sits in a very precarious position, being reliant on the actions of the far-right Rassembelement National. If the RN votes for the budget or abstains then it can pass. However, if the RN votes against it  then this would force the gov't to use Art 49.3.
  • The use of Art 49.3 risks societal and political pushback. Mass protests could erupt on the streets, and in the National Assembly using the article  brings forward the prospect of a no-confidence vote. The gov't would once again be reliant on RN support to remain in office, something that cannot be guaranteed.
  • A bullet looking at the potential timetable for the budget will follow shortly.