France with a new government facing political challenges and deep public debt

2024-12-24 20:38:00, Kosova & Bota CNA

The president and prime minister of France managed to form a new government, on the eve of the end-of-year holidays. Now they have hard work ahead of them.

Debt, growing pressure from the nationalist extreme right, wars in Europe and the Middle East are among the many challenges facing President Emmanuel Macdon and Prime Minister Francois Bayrou after a turbulent 2024.

One of the most important issues is the approval of the 2025 budget. Financial markets, rating agencies and the European Commission are pushing France to reduce its deficit, comply with European Union rules limiting debt and not allow borrowing costs to rise. of France to get out of control, which would have consequences for the stability of all countries in the euro area.

Currently, France's debt is estimated to have reached 112 percent of gross domestic product. Debt rose after the government bailed out businesses and workers during the COVID-19 pandemic, while the coronavirus hampered economic growth and the war in Ukraine affected energy prices.

"The political situation is difficult. The international situation is dangerous and the economic context is fragile," said newly elected Finance Minister Eric Lombard, a low-profile banker who advised the Socialist government in the 1990s.

How long will this government last?

This is France's fourth government in the last year. No party has a parliamentary majority, and the new cabinet can only survive with the support of center-right and center-left lawmakers.

The last government was toppled with the help of Mrs. Marine Le Pen, President Macron's staunchest opponent, who joined left-wing forces to overthrow him.

New Prime Minister Bayrou consulted Ms Le Pen when forming the new government and she remains a powerful figure.

Meanwhile, left-wing voters are feeling betrayed that they failed to have a bigger impact on the government despite winning the summer election.

The possibility of the government facing a vote of no confidence still exists.

What is the position of President Macron?

President Macron has repeatedly said that he will remain in the position of president until the end of his term in 2027.

But if this new government falls within months and the country faces a political stalemate, pressure will mount on President Macron to resign and call early elections.

Ms Le Penn's National Union party aims to oust President Macron from power. But she herself is facing problems: a court ruling on an allegation of illegal party financing could bar her from running for president of the country.

Other urgent matters

The National Union party and far-right Interior Minister Bruno Retailleau want tougher immigration rules.

Defense spending is a key issue due to concerns about European security and US President-elect Donald Trump's push for Europe to spend more on defense.

President Macron, meanwhile, is seeking the passage of an emergency law in early January that would allow for the rapid reconstruction of the French archipelago of Mayotte in the Indian Ocean, which was devastated by the cyclone./ Voa