{"id":185168,"date":"2025-10-08T09:50:08","date_gmt":"2025-10-08T09:50:08","guid":{"rendered":"https:\/\/www.newsbeep.com\/uk\/185168\/"},"modified":"2025-10-08T09:50:08","modified_gmt":"2025-10-08T09:50:08","slug":"french-pm-sees-convergence-in-last-ditch-budget-talks","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/uk\/185168\/","title":{"rendered":"French PM sees \u2018convergence\u2019 in last-ditch budget talks"},"content":{"rendered":"<p>Unlock the Editor\u2019s Digest for free<\/p>\n<p class=\"article__content-sign-up-topic-description o3-type-body-base\">Roula Khalaf, Editor of the FT, selects her favourite stories in this weekly newsletter.<\/p>\n<p>France\u2019s caretaker prime minister S\u00e9bastien Lecornu said the prospect of snap elections was receding after holding last-ditch talks with political parties for a budget deal, as allies of President Emmanuel Macron suggested suspending his emblematic pension reforms. <\/p>\n<p>Giving an update on the first of two days of negotiations, Lecornu said on Wednesday he had detected \u201cmovement and convergence which, obviously, puts back the prospect of a dissolution\u201d of parliament. <\/p>\n<p>Former prime minister \u00c9lisabeth Borne, now education minister, on Tuesday night suggested pausing reforms to raise the retirement age to 64 \u2014 a major concession to the left that would dismantle a central pillar of Macron\u2019s economic reforms.<\/p>\n<p>Rapha\u00ebl Glucksmann, a leading centre-left politician and member of the European parliament said on Tuesday night that Lecornu had \u201copened the door\u201d to pausing the reform in discussions. \u201cIt was impossible a few days ago but it is becoming possible today\u2009.\u2009.\u2009. our demand is not unattainable\u201d.<\/p>\n<p>But making too many concessions to the left risks further alienating the rightwing R\u00e9publicains, who want to see <a href=\"https:\/\/www.ft.com\/france\" data-trackable=\"link\" rel=\"nofollow noopener\" target=\"_blank\">France<\/a>\u2019s rising debt levels taken in hand. French bonds and stocks have already sold off this week in reaction to the political uncertainty.<\/p>\n<p>Outgoing finance minister Roland Lescure told France Inter on Wednesday that the suspension of pension reforms was one of the measures being assessed to <a href=\"https:\/\/www.ft.com\/content\/cbca30b0-4a33-4105-9729-7050c031220e\" data-trackable=\"link\" rel=\"nofollow noopener\" target=\"_blank\">pass a budget<\/a> but that the move would need to be financed by other means. <\/p>\n<p>\u201cIn today\u2019s situation and given the urgency, there are ways of moving forward, but\u2009.\u2009.\u2009.\u2009changing the pension reform would cost hundreds of millions in 2026, and billions in 2027,\u201d he said.<\/p>\n<p>Lecornu said all parties in Tuesday\u2019s talks agreed that the 2026 budget should cut the deficit to below 5 per cent of GDP, saying it was essential for France\u2019s credibility.<\/p>\n<p>The reforms to progressively raise the retirement age in France from 62 to 64 were passed in 2023, but a suspension would stop the gradual increases. The measures were bitterly opposed by opposition parties and unions and sparked major protests.<\/p>\n<p>Borne, who introduced the reforms to parliament, told Le Parisien newspaper on Tuesday the law should not be considered a \u201ctotem\u201d in efforts to find a way out of the crisis.<\/p>\n<p>Lecornu, who resigned on Monday after less than a month in post, has been <a href=\"https:\/\/www.ft.com\/content\/44dac91c-0fb9-4025-9762-77d7d98c74d4\" data-trackable=\"link\" rel=\"nofollow noopener\" target=\"_blank\">tasked by Emmanuel Macron<\/a> with leading final discussions to explore whether compromise to pass a 2026 budget can be sought in the country\u2019s divided parliament.<\/p>\n<p>Olivier Faure, head of the Socialist party, said that freezing the pension age reform would be an \u201cimportant gesture if it came to pass\u201d but that he \u201cwanted to know if this victory is real or not\u201d before celebrating it.<\/p>\n<p>\u201cI need to check that this isn\u2019t simply a smokescreen,\u201d he said on FranceInfo on Wednesday. <\/p>\n<p class=\"n-content-recommended__title o3-type-body-highlight\">Recommended<\/p>\n<p><a href=\"https:\/\/www.ft.com\/content\/04ed89d1-d87d-4266-9919-a8bda204b461\" data-trackable=\"image-link\" data-trackable-context-story-link=\"image-link\" tabindex=\"-1\" aria-hidden=\"true\" rel=\"nofollow noopener\" target=\"_blank\"><img decoding=\"async\" class=\"o-teaser__image\" src=\"https:\/\/www.newsbeep.com\/uk\/wp-content\/uploads\/2025\/10\/https:\/\/images.ft.com\/v3\/image\/raw\/https%3A%2F%2Fd1e00ek4ebabms.cloudfront.net%2Fproduction%2Fcf8aa5.jpeg\" alt=\"Sebastien Lecornu walks out of a doorway holding papers, near the EU and French flags, appearing solemn.\"\/><\/a><\/p>\n<p>Scaling back Macron\u2019s pension reform has been a key demand of the left and the far right but it is still unclear whether a budget including the measure would win sufficient support in France\u2019s <a href=\"https:\/\/www.ft.com\/french-politics\" data-trackable=\"link\" rel=\"nofollow noopener\" target=\"_blank\">fractured National Assembly<\/a>.<\/p>\n<p>The conservative R\u00e9publicains are objecting to the measure, with Val\u00e9rie P\u00e9cresse, a senior party member and president of the \u00cele-de-France region warning it would \u201clet the deficits of the pensions system explode\u201d and put the burden on the next generation.<\/p>\n<p>France\u2019s borrowing rates have already increased in the past month since the previous Bayrou administration fell in a confidence vote on deficit reduction measures for next year\u2019s budget. <\/p>\n<p>Rating agency Fitch, which was the first to downgrade France\u2019s sovereign debt last month, warned that \u201cfailure to implement fiscal consolidation measures\u201d could leave the country facing further credit downgrades.<\/p>\n","protected":false},"excerpt":{"rendered":"Unlock the Editor\u2019s Digest for free Roula Khalaf, Editor of the FT, selects her favourite stories in this&hellip;\n","protected":false},"author":2,"featured_media":185169,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[14],"tags":[84,4176,4174,4175,56,54,55],"class_list":["post-185168","post","type-post","status-publish","format-standard","has-post-thumbnail","category-personal-finance","tag-business","tag-finance","tag-personal-finance","tag-personalfinance","tag-uk","tag-united-kingdom","tag-unitedkingdom"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts\/185168","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/comments?post=185168"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts\/185168\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/media\/185169"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/media?parent=185168"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/categories?post=185168"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/tags?post=185168"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}