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FRANCE: PM Accedes To Le Pen Demands On Electricity Tax In Effort To Pass Budget

FRANCE

In an interview with Le Figaro, PM Michel Barnier confirms that the removal of caps on household electricity taxes that were planned in the 2025 budget will now no longer be included. This comes in an effort to avoid the far-right Rassemblement National (National Rally, RN) voting down the budget or moving a censure motion against the gov't. 

  • Previously, the gov't has altered parts of the budget at the behest of former PM Gabriel Attal and leader of the conservative Les Republicains (LR) Laurent Wauquiez. However, both men hail from parties involved in the gov't and therefore meeting their demands comes with little political cost. However, changing the budget to appease RN parliamentary leader Marine Le Pen risks more blowback.
  • Speaking to BFM TV earlier today, Economy Minister Antoine Armand said that the gov't was ready to make "concessions" in order to get the budget through by the 21 Dec deadline. He also accused the centre-left Socialist Party (PS) of 'threatening' the gov't, as opposed to the RN that he says is seeking to negotiate.
  • Working with the RN may ensure some short term stability in avoiding a censure motion and passing a budget, but it risks longer-term issues in posing a threat to France's fiscal trajectory, which is under the close watch of the EU.
  • Being seen to work with the RN also risks a backlash from centrist supporters of the gov't that have argued relying on RN support risks the cordon sanitaire that in the summer legislative elections saw Ensemble work with the leftist NFP to limit RN gains in the National Assembly. 
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In an interview with Le Figaro, PM Michel Barnier confirms that the removal of caps on household electricity taxes that were planned in the 2025 budget will now no longer be included. This comes in an effort to avoid the far-right Rassemblement National (National Rally, RN) voting down the budget or moving a censure motion against the gov't. 

  • Previously, the gov't has altered parts of the budget at the behest of former PM Gabriel Attal and leader of the conservative Les Republicains (LR) Laurent Wauquiez. However, both men hail from parties involved in the gov't and therefore meeting their demands comes with little political cost. However, changing the budget to appease RN parliamentary leader Marine Le Pen risks more blowback.
  • Speaking to BFM TV earlier today, Economy Minister Antoine Armand said that the gov't was ready to make "concessions" in order to get the budget through by the 21 Dec deadline. He also accused the centre-left Socialist Party (PS) of 'threatening' the gov't, as opposed to the RN that he says is seeking to negotiate.
  • Working with the RN may ensure some short term stability in avoiding a censure motion and passing a budget, but it risks longer-term issues in posing a threat to France's fiscal trajectory, which is under the close watch of the EU.
  • Being seen to work with the RN also risks a backlash from centrist supporters of the gov't that have argued relying on RN support risks the cordon sanitaire that in the summer legislative elections saw Ensemble work with the leftist NFP to limit RN gains in the National Assembly.