France’s budget talks close to collapse after Socialists pull out

Paris: French budget talks were on the verge of collapse on Jan 29, a day after Socialist party officials suspended their participation in protest against remarks about immigration by the Prime Minister.

In a television interview on Jan 27, Prime Minister Francois Bayrou referred to “a feeling of invasion” by immigrants.

“We suspended our negotiations because the words from the Prime Minister were not dignified,” Mr Philippe Brun, a Socialist lawmaker involved in the budget talks, said in an interview with Sud Radio on Jan 29. He said he hoped the talks would resume.

Without the support of the Socialists, Mr Bayrou may not have enough support to advance his budget and take steps to trim the deficit as called for by EU officials.

Mr Bayrou was named prime minister in December and is seeking to avoid the fate of his predecessor Michel Barnier. Politicians from the left and right banded together to topple Mr Barnier’s government when he tried to pass a budget that lawmakers said went too far in a bid to cut spending.

While Mr Barnier had sought support from the far-right National Rally, Mr Bayrou has attempted to survive with the backing of the Socialists. He has agreed to reopen talks on pension reform, a key initiative of President Emmanuel Macron, and scrapped plans by his predecessor to cut thousands of teachers’ jobs.

So far, Mr Bayrou has survived one no-confidence vote after the Socialist party did not support it. However, Mr Brun said Socialists would consider backing another no-confidence motion if they could not come to an agreement on the budget.

Mr Laurent Baumel, another Socialist lawmaker, said in an interview with BFM TV that the government had not made enough concessions.

Mr Brun said Socialists were pressing for an increase in the minimum wage and more investment in the green transition, among other things.

The government is seeking to pass the budget in both houses of Parliament by the end of February.