PREVIEW

France Risks Year-End Budget Crisis as Philippe’s Party Blocks Social Security Bill. France faces the possibility of ending the year without an approved budget as former PM Edouard Philippe’s party withdraws support for the social security budget. Philippe’s Horizons party, controlling 34 seats, threatens to derail the fiscal plan, leaving France's government scrambling for a solution. Lawmakers must act quickly to cut the €3.4 trillion debt and reduce the budget deficit, expected to hit 5.4% of GDP this year. The absence of a budget could lead to a debt crisis, with the government under pressure to cut the deficit to 5% in the next fiscal year. Philippe’s refusal to support the bill underscores political divisions, as Prime Minister Sébastien Lecornu faces mounting challenges to push through his plans. Lecornu’s vow not to use Article 49.3, a constitutional clause to pass the budget, is fueling speculation he may need to reconsider this strategy. Conservative leader Bruno Retailleau urges Lecornu to use Article 49.3 to avoid budgetary chaos, despite the risk of a no-confidence motion. The French government insists on passing short-term legislation if necessary to prevent a shutdown, with MPs taking individual responsibility for the vote.
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