Business

FRENCH POLITICAL INSTABILITY WEAKENS ITS ECONOMIC ATTRACTIVENESS

DUE TO REGIME CRISIS & NO BUDGET 2025


Economic Uncertainty Ahead (Source: wikimedia)
Yael Braun Pivet Pres. of National Assembly,
(Source: Rahma Sophia Rachdi Jedi Foster)
USPA NEWS - THE VOTE OF NO CONFIDENCE WAS PASSED WITH A MAJORITY OF 331 VOTES OUT OF 577
The National Assembly voted on Wednesday, December 4, in favor of overthrowing Michel Barnier's government. The motion of censure filed by the New Popular Front (NFP), in reaction to the use of Article 49.3 of the Constitution on the Social Security budget, was approved by 331 votes out of 574 (58%).
The threshold of 288 votes needed to bring down the government (half of the 574 seats currently filled in the Palais-Bourbon) was largely crossed thanks to the combination of votes from the NFP, the National Rally and its ally UDR (Union of the Right, Eric Ciotti's group Ally of marine Le Pen).
One of the serious consequences of this fall of Michel Barnier's government is the plunge into economic uncertainty, thus worsening economic and social stability through such political instability.
However, the political stability that distinguished France so far, from other European countries such as Germany, Spain and Portugal was supported by European mechanisms and the strength of French institutions. However, as we publish, the abyssal debt of €Bn 3228, which continues to widen the deficit in public spending, versus insufficient public revenues. All this together, is now weakening economic stability and, through its financial condition, reducing its economic chances of boosting its growth, and industrial attractiveness. Investors are not currently reassured by the gloomy French atmosphere in the face of the failure of the 2025 budget vote.
Budget 2025
Source: recettes gratuites.fr
Indeed, the 2025 budget was to be voted on December 21, but France found itself without a budget at the end of the year. The agricultural and industrial sectors, suffer already from loss of investments, layoffs, even in the entrepreneurship, where the depression is shown.
Indeed, according to forecasts, there are 300,000 jobs on hold, to ne added to high risks of tax increases in France for taxpayers and for companies (The 2025 budget, which has just been censored, provided for €40 Billion in taxes, half of which would go to companies).
All this without counting the anger of farmers who would hope for their aid of €300 Million of emergency aid planned by the previous government, is now on hold, while the unions are promising major strikes and protests. All this is not reassuring for foreign investors to settle in France or stay still. French stocks are becoming undervalued.

Paris Eiffel tower
Source: Jedi Foster & Rahma Sophia Rachdi
However, as the leader of the National Rally (RN), Marine Le Pen who was the one to discuss the most and negotiated the most with Prime Minister Michel Barnier raising the red flag of the censorship of her vote of confidence, recalled, "Scaring the French is not a good policy," said Marine Le Pen...But that was before she and the left right to vote against the confidence and knocking me he out within one round on 4th December 2024, sixty years (62) later the same episode of the fifth French Republic /
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