(Bloomberg) — The head of France’s state auditor, Pierre Moscovici, said the country needs political stability to tackle its high budget deficit and warned against a snap presidential election before Emmanuel Macron’s term ends in 2027.
Most Read from Bloomberg
“We have reached such a point in our deficit and our debt that there is a need for reduction, there is need for a clear impulse for a debt- and deficit-reduction move,” the former Socialist finance minister told Bloomberg Television.
France’s fiscal situation is in the spotlight as Prime Minister Michel Barnier’s government risks being toppled by parliament amid opposition to his 2025 budget bill. The initial plan included some €60 billion ($63.2 billion) of tax cuts to bring the deficit to 5% of economic output from 6.1% this year, but he’s far short of having a majority behind it.
To avoid the bill being crushed, Barnier will likely have to use a constitutional provision to adopt it without a vote. However, that raises the likelihood of a no-confidence motion that could torpedo the budget and oust the government.
In such a scenario, Marine Le Pen’s National Rally would likely hold the casting votes. She has previously said her party doesn’t want to spark chaos, but in recent days she has repeated warnings the far right could back censuring the government.
“We need political stability, we need to respect our institutions, and that would be terrible if we would have to call for a kind of snap, snap presidential elections never happened, so we need to go through these two years,” Moscovici said on Friday. “I wouldn’t say chaotic, they will be fragile, since there will not be a majority in parliament.”
–With assistance from Kriti Gupta.
Most Read from Bloomberg Businessweek
©2024 Bloomberg L.P.
