The left and the right have clearly announced their intention to vote for a motion of censure against the current government if the latter calls on 49.3 to validate the 2025 budget. A situation which is already having a heavy impact on the euro.
To deal with the public deficit, the government is targeting a savings plan of 60 billion. Except that the 2025 budget is far from being validated because of multiple points of disagreement between the government clan and the opposition. In the event that the 2025 budget is voted on via article 49.3, the oppositions will undoubtedly respond with a motion of censure.
Moreover, Marine Le Pen indicated that the National Rally would vote in favor of a motion of censure in the event that the current government decides to forcibly pass the 2025 budget project. After the dissolution of the National Assembly , France therefore finds itself in political uncertainty which weighs heavily on the country's economy.
This Monday, the Euro fell by 0.49% against the American currency, settling at 1.527 dollars. Against the British currency, the fall amounted to 0.38%, with the euro at 0.8276 pence. The country's political instability is therefore penalizing the local economy, and things are unlikely to get better.
Could the euro fall further?
Indeed, while the text of the Social Security budget is being examined this Monday afternoon, neither the left nor the far right intend to vote in favor of it. For good reason, the oppositions are demanding other concessions from the government on the subject of Social Security. “ The government has expressed its wish not to modify the PLFSS (draft law on the financing of Social Security), this is extremely clear and we have taken note of this », Explained Marine Le Pen to AFP.
The end of December is therefore likely to be eventful, because if the government falls, “ this could lead to budget cuts and other austerity measures that could harm economic growth », reported Kathleen Brooks, of XTB, in the columns of La Tribune.
« If the Social Security budget was censored, that would mean that on January 1, your Vitale card would no longer work. This means that pensions are no longer paid. This means after a while that civil servants are no longer paid », declared the former Prime Minister, Elisabeth Borne, a few days ago. Statements which were half-denied by the lawyer Bertrand-Léo Combrade.
