France’s new government has unveiled its 2025 belt-tightening budget bill, with plans for major tax hikes and spending cuts aimed at tackling the country’s giant deficit. Prime Minister Michel Barnier, a conservative, described the massive hole in the public finances as a “sword of Damocles” that could bring the euro zone’s second-biggest economy “to the edge of the precipice.” Barnier's budget plans have angered many in the country and are expected to be harshly debated in parliament in the coming weeks, with his government's survival at stake. He may have to backtrack on some planned measures since losing a budget vote would prompt a deep political crisis.
