Tensions in France
The French Prime Minister, Michel Barnier, estimated Tuesday evening on TF1 that the “moment” was “very serious” on the budgetary level and warned of “serious turbulence on the financial markets” in the event of censorship by his government . “These statements come after press reports according to which Emmanuel Macron said he expected the government to fall,” comments Jim Reid, economist at Deutsche Bank.
“A proposed law of shame”: La France Insoumise triggers a political storm
“The government will fall. She (Marine Le Pen) will censor it at some point and sooner than we think,” the newspaper Le Parisien reported Tuesday, citing “several witnesses.” The Elysée officially denied these remarks, however maintained by the newspaper.
Michel Barnier also reiterated that he would “certainly” use 49.3 to have the budget adopted in order to try to reduce the country’s heavy deficit. However, its activation will allow the oppositions to table a motion of censure, which puts the Barnier government in the hot seat.
In this context, the S&P rating agency will pronounce on French debt on Friday, after warnings from Moody’s and Fitch, adding more pressure on the French market.
