France Concedes to Le Pen on Budget, Averting No-Confidence Vote

The French government has made a last-minute concession to far-right leader Marine Le Pen on the 2025 budget, in a desperate attempt to avoid being ousted from power in a no-confidence vote, Bloomberg reports.

Prime Minister Michel Barnier has pledged not to cut reimbursements for medicines, fulfilling one of Le Pen’s key demands following crisis talks on Monday. The concession is a significant climbdown for the government, which had previously resisted Le Pen’s demands.

Barnier’s move is a last-ditch effort to keep the budget bill on track and remain in office. Without a majority in parliament, Barnier was prepared to use Article 49.3, which allows for the adoption of the social security bill without a vote, but also opens the door to no-confidence motions.

Le Pen’s National Rally party, the largest in the lower house, had threatened to vote against the government, bringing down Barnier’s administration. Party officials have not yet responded to requests for comment on Barnier’s latest concession.

The uncertainty surrounding the budget vote has rattled financial markets, driving up France’s borrowing costs. However, French assets rebounded after Barnier’s announcement. The spread between 10-year French and German bonds narrowed, and French stocks rose.

Speaking on LCI television, National Rally lawmaker Laure Lavalette said the party would hold a meeting at 2 p.m. to decide its next move. The party could still vote against the budget bill, but Barnier’s concession may have averted an immediate no-confidence vote that could have brought down the government.