Investing.com -- The French Senate has given its approval to the 2025 budget on Thursday, moving the legislation to the constitutional council for further review.
If the council gives its approval, President Emmanuel Macron will be able to sign the budget into law, resolving a political deadlock that led to the downfall of a previous government and unsettled markets.
The budget’s main objective is to decrease the deficit by cutting spending and implementing higher taxes on wealthy individuals and businesses. The decision to push through the budget came from Prime Minister Francois Bayrou, who used special constitutional powers.
This move was made necessary after the previous government failed to pass a budget in 2024, following weeks of political disagreements.
Jean-Francois Husson, a senator who represented the group of lawmakers responsible for finalizing the budget text, emphasized the urgency of the situation, stating, "There is not a second to lose."
To ensure the government’s core functions were maintained and to avoid a shutdown similar to those seen in the United States, lawmakers approved a special law in December.
Nevertheless, they will need to initiate the procedure for the 2026 budget in a few months.
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