The new French government under Prime Minister François Bayrou is focusing on adopting the 2025 budget and reducing the public deficit. President Emmanuel Macron called for boldness in the first Council of Ministers meeting, emphasizing the need to move away from inflexible positions towards demanding and going beyond expectations. The government’s priority is to bring down the public deficit, which was 6.1% of GDP in 2024, to 5.4% in 2025 to comply with EU rules on budgetary discipline. This target is less ambitious than the previous goal set by former Prime Minister Michel Barnier, who aimed for a 5% deficit in 2025.
The new government was born out of a major political crisis, with the previous government being toppled on 4 December due to a motion of censure in the National Assembly. François Bayrou was appointed as the new Prime Minister on 13 December and announced the composition of his government on 23 December. The government is facing pressure from rating agencies, financial markets, and the European Commission to reduce the deficit and adhere to EU guidelines. Mayotte, which was devastated by cyclone Chido, is also awaiting a promised bill from the government.
The ministers of the new government met for the first time at the Ministry of the Interior for breakfast before heading to the Élysée Palace to meet with President Macron. Government spokeswoman Sophie Primas urged everyone to shoulder their responsibilities and move away from inflexible positions in order to address the country’s current period of instability. The Stability and Growth Pact sets the debt ceiling at 60% of GDP and a public deficit ceiling at 3% of GDP, further highlighting the need for fiscal discipline in France.
The government is working towards adopting the 2025 budget as its top priority, with a focus on reducing the public deficit. The target is to bring the deficit down to 5.4% of GDP in 2025, following the 6.1% deficit in 2024. The government faces pressure from various entities, including rating agencies and the European Commission, to adhere to EU guidelines on budgetary discipline. The new government, led by François Bayrou, aims to address the country’s period of instability and move towards a path of sustainability and progress.
President Macron called for boldness in the first Council of Ministers meeting under Prime Minister François Bayrou’s new government. The government was formed in response to the political crisis that led to the toppling of the previous government in December. The focus of the new government is on fiscal discipline and reducing the public deficit, in line with EU regulations. Mayotte, which was hit by cyclone Chido, is also awaiting government assistance promised by François Bayrou. The government is urged to adopt the 2025 budget and work towards reducing the deficit to ensure economic stability and compliance with EU guidelines on budgetary discipline.
