Prime Minister Sebastien Lecornu won the crucial support of the Socialist Party in France’s National Assembly, significantly improving the chances of his new government surviving two no-confidence votes Thursday.
Lecornu has said his sole mission is to get a budget for France, but acknowledged he must allow lawmakers greater sway over the bill and other policies in order to avert another government collapse.
“France must have a budget, because there are urgent measures that must be taken without delay,” Lecornu said Tuesday.
The draft budget presented to parliament Tuesday targets a reduction in the deficit to 4.7% of economic output from 5.4% this year. Two thirds of the adjustment is based measures to curb spending, including unpopular freezes of pension and welfare payments.
Charlotte de Montpellier, ING’s Senior economist speaks to Bloomberg’s Francine Lacqua about the french economy and the likelihood for the budget to go ahead. (Source: Bloomberg)
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France's Lecornu Draft Budget Targets 4.7% Deficit
