On January 8, 2025, french Economy Minister Eric Lombard and Public Accounts Minister Amélie de Montchalin convened a meeting with representatives from the Ecologists, Communist Party (PCF), and Socialist Party (PS) to discuss the upcoming 2025 budget. Marine Tondelier, the national secretary of the Ecologists party, emphasized the need for detailed discussions on budgetary commitments, stating, “We don’t have concrete things” to announce yet.The meeting, which lasted an hour and a half, aimed to foster unity among the parties, with Tondelier insisting that the repeal of the pension reform is essential for future negotiations. The discussions reflect a broader call for meaningful government action on public services, healthcare, and taxation as France navigates its current economic challenges.>
la France insoumise (LFI) did not want to participate in the meetings organized by Bercy and did not take part in the meeting on Wednesday evening.The “rebel” president of the Assembly’s Finance Committee, Eric Coquerel, is however expected on thursday for a meeting with ministers as part of these meetings.
On Wednesday evening, former Prime Minister Edouard Philippe, president of the Horizons party, a member of the presidential coalition, said for his part that he was ready on Wednesday to accept a ” effort ” budget “a little less” if it allows us to preserve the “political stability” and thus avoid a second motion of censure on a financial law. “I see that there is an advantage and an interest for the country in maintaining this political stability and not having a second motion of censure on a second financial law”easing the initial deficit target for this year from 5% to 5.4%, he told France 2.
When questioned about a possible suspension of the pension reform to obtain, above all, from the socialist deputies not to vote in favor of another motion of censure, the former prime minister considered that it was a “bad idea”. « In any case, I am very convinced that this is not the right tool. But I understand that the government must listen to everyone and try to build somthing »,he added,following the meeting in Bercy with the ministers.
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“I don’t have the obsessions of an accountant, I have an obsession with sovereignty, state authority and the independence of France”added Mr. Philippe.
Time.news Editor: Welcome, everyone, to today’s discussion on the current state of France’s budget negotiations. We have with us Dr. Jean-Pierre Lefèvre, an economist who specializes in public finance. Dr. Lefèvre, could you give us an overview of the recent meeting held on January 8 between Economy Minister Eric Lombard, Public Accounts Minister Amélie de Montchalin, and representatives from various parties?
Dr. Jean-Pierre Lefèvre: Certainly! the meeting was crucial, reflecting ongoing tensions and negotiations regarding the forthcoming 2025 budget. The government is under pressure to address public sentiment amidst rising public debt and deficit concerns. Marine Tondelier, of the Ecologist party, stressed the urgency for detailed discussions on budgetary commitments, saying, “We don’t have concrete things” to announce yet. This highlights the challenge the government faces in formulating a budget that satisfies all stakeholders while managing economic reality.
Time.news Editor: Tondelier also mentioned that the repeal of the pension reform is essential for future negotiations.Can you elaborate on the meaning of this demand in the context of the budget discussions?
Dr. Jean-Pierre lefèvre: The pension reform has been a contentious issue in France, mobilizing important public opposition. Tondelier’s call for its repeal suggests that before ther can be any serious negotiations regarding budget allocations for services like healthcare and public welfare, there must be a resolution on this divisive reform. The political unity needed to pass a budget may hinge on how the government responds to these demands, especially from the left-leaning parties.
Time.news Editor: Fascinating point! We also see that la France insoumise (LFI) did not want to participate in the meetings and has distanced itself from the process. What impact do you think this will have on the discussions going forward?
dr. Jean-Pierre Lefèvre: The absence of LFI signals a significant fragmentation within the left,which could weaken collective bargaining power.while Eric Coquerel, the president of the Assembly’s Finance Committee from LFI, is expected to attend future meetings, their initial reluctance suggests they may not fully align with the government’s agenda. This could complicate the negotiations, making it harder to achieve a consensus on fiscal strategies that address both economic constraints and social demands.
Time.news Editor: Former Prime Minister Édouard Philippe also spoke about being ready to accept a budget “a little less.” What does this statement imply about the likely direction of the negotiations?
Dr. Jean-Pierre Lefèvre: Philippe’s statement indicates a willingness to potentially relax budget cuts, which is a critical stance considering the government’s proposed savings of €60 billion through tax hikes and spending cuts. This could be interpreted as an opening to negotiation, suggesting that while austerity measures are necessary, there may be flexibility based on the discussions’ outcomes. It reflects the government’s balancing act of financial prudence while also considering the socio-political climate, especially with upcoming public sentiment at stake.
Time.news Editor: Thank you, Dr. Lefèvre. It truly seems that these discussions will have far-reaching implications for France’s economy and the political landscape.We’ll keep an eye on how these negotiations unfold. Thank you for sharing your insights with us today!
dr. Jean-Pierre Lefèvre: Thank you for having me! It will be interesting to see how these negotiations develop in the coming weeks.