The European Commission has approved the new French government’s revised spending plan, providing a significant boost to Prime Minister François Bayrou after his predecessor’s 2025 budget failed in parliament, diplomats told POLITICO.
EU ambassadors and financial advisors will discuss the plan in meetings today, according to the diplomats. French Finance Minister Eric Lombard has pledged to reduce France’s deficit to the EU’s 3% of GDP target by 2029, down from a concerning 6.2% last year.
Michel Barnier, the former European Commissioner, was ousted as prime minister last month, just short of his 100-day mark, due to strong opposition in the French parliament against his proposed 2025 budget. Bayrou’s government has now presented a revised version, which includes €53 billion in spending cuts and tax hikes aimed at stabilizing France’s strained public finances.
EU finance ministers are expected to review the plan at their meeting on Tuesday, where they will likely be asked to give their approval.
