Amid mounting pressure from Marine Le Pen's far-right National Rally, French Prime Minister Michel Barnier has made a dramatic last-minute concession by dropping a proposed electricity tax hike from the 2025 budget. This decision comes as his government faces the threat of a no-confidence vote, which could topple his fragile coalition and plunge France into political chaos.
Barnier's budget proposal, featuring €40 billion in spending cuts and €20 billion in tax increases, has sparked widespread opposition. The far-right's demands include scrapping pension adjustments, maintaining full drug reimbursements, and renegotiating France’s EU contributions. The electricity tax hike became a pivotal issue, with the National Rally declaring it a "red line."
Despite his concession, uncertainty remains. Left-wing parties have already pledged to push for a no-confidence vote, and Le Pen's party continues to issue further demands. The political gridlock has unnerved financial markets, with fears of broader instability.
The situation underscores Barnier's precarious position. His minority government lacks firm parliamentary backing, forcing him to navigate tense negotiations to salvage both his budget and political career. Observers warn that any failure to meet the far-right’s terms could seal his administration’s fate.
This crisis highlights the growing influence of the far-right in shaping French politics. Le Pen's National Rally, once marginal, now plays a decisive role, reshaping the nation's political landscape in ways few could have predicted.
