(Bloomberg) -- The French government has requested an extension from the European Commission to the deadline for submitting its plan to reduce the public deficit, the Finance Ministry said on Sunday, confirming a report in La Tribune Dimanche.
France asked for additional time to ensure consistency between the plan and its 2025 finance bill, a representative for the ministry told Bloomberg, without saying what the new proposed deadline would be. The plan had been due by Sept. 20.
President Emmanuel Macron on Sept. 5 named Michel Barnier as France’s new prime minister. Barnier’s most urgent priority will be a budget bill for 2025, which must be presented to parliament for debate by Oct 1. The new premier will first have to find a new finance minister to replace Bruno Le Maire, who’s said he won’t remain in the post.
The EU had asked France and six other countries for a longer-term fiscal strategy to be sent to Brussels in September. EU rules include strict measures for nations with debt higher than 60% of gross domestic product and a budget deficit of more than 3%. France’s deficit was 5.5% last year, with debt at about 111% of GDP.
Barnier has no majority in the Parliament, and faces a National Assembly with many lawmakers outright hostile to him, or at best demanding policy concessions in exchange for not toppling the government in a no-confidence vote.
Political-party math means that Barnier’s administration can survive such a motion with the support of centrists and conservatives, and the tacit acceptance of the far right National Rally.
Barnier is already under pressure while he attempts to form a government. Marine Le Pen, leader of the right-wing National Rally, told La Tribune on Sunday that she’s waiting for action from the new premier. France can “no longer afford” spending to fund immigrants at the expense of police, and must also crack down on fraud, she said.
On Saturday, about 110,000 demonstrators turned out in cities across France to oppose Macron’s choice of a right-wing prime minister, after the far-left party France Unbowed and other organizations called for protests.
An Ifop poll for the JDD weekly indicates that 52% of the French are satisfied with Barnier being picked as a prime minister, even though 74% believe his government will be quickly rejected by the parliament.
(Updates with confirmation from ministry from first paragraph.)
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