- The French Senate has approved the 2025 budget, ending a political deadlock and market instability.
- Prime Minister Francois Bayrou used special powers to push the budget through after weeks of political wrangling.
- The French government survived a no-confidence vote, ensuring the passage of the budget bill.
- In the US, the government was on the brink of a shutdown, highlighting the complex nature of political processes in both countries.
In a significant political development, the French Senate has given its approval to the 2025 budget, which is now set to be reviewed by the constitutional council. This move brings an end to a political deadlock that had led to the downfall of one government and caused significant market instability. If the council gives its nod, President Emmanuel Macron will sign the legislation into law. The budget is designed to reduce the deficit by cutting spending and increasing taxes on the wealthy and corporations.
The Prime Minister, Francois Bayrou, had to invoke special constitutional powers to push the budget through, following the failure of his predecessor’s government to pass one in 2024. This was after weeks of political wrangling with different parties. Jean-Francois Husson, a senator who spoke on behalf of the panel of lawmakers who finalized the budget text, emphasized the urgency of the situation, stating, There is not a second to lose.
The French government had previously passed a special law to maintain core government functions and prevent an American-style government shutdown in December. However, in a few months, they will need to start the process all over again for the 2026 budget.
Political Developments in France and the US
The French government had recently survived a no-confidence vote in Parliament, providing the newly appointed prime minister a temporary reprieve from months of political turmoil. The motion was supported by only 128 lawmakers in the 577-seat National Assembly, France’s lower house, falling short of the absolute majority required. The failure of the motion ensured the safe passage of the 2025 budget bill, which France desperately needs. The government hopes that the budget will rein in the country’s surging debt and deficit, aiming to generate 50 billion euros in savings through tax increases and spending cuts.
The budget bill, which aims to reduce the deficit, raise taxes on large firms and the wealthy, and cut spending, was passed using a tool known as Article 49.3. This allows the minority government to pass the legislation without a parliamentary vote. In the United States, the Secret Service has been praised by lawmakers for taking quick action after a gunman was spotted near the golf course where former President Donald Trump was playing in Florida. Members of Trump’s Secret Service detail fired at the suspect, who fled and was later arrested. This incident has led to calls for additional resources for the Secret Service to protect the former president, the vice president, and other top elected and campaign officials.
In other political news, House Republicans reelected Rep. Mike Johnson as speaker after some initial drama. Johnson’s victory came as a surprise after three Republicans initially voted against him, depriving him of the 218-person majority he needed to win the speakership. However, after discussions with Johnson, Reps. Ralph Norman of South Carolina and Keith Self of Texas flipped their votes in favor of his candidacy, securing his position.
Political Turmoil and Government Shutdowns
The Senate confirmed the 235th lifetime federal judge nominated by President Biden, topping the four-year record set during the first Trump administration by a single judge. This drive significantly reshaped the federal courts to be more ethnically and professionally diverse. The approval of Serena Raquel Murillo of California to be a judge in the state’s central district wrapped up a push by Democrats to fill as many vacancies as possible on the bench before turning the majority over to Senate Republicans.
In a significant development, the U.S. government was on the brink of a shutdown unless Congress came up with a plan and acted soon. Federal funding was set to expire, and congressional Republicans were back to the drawing board after billionaire Elon Musk and President-elect Donald Trump blew up their original bill and then a backup plan failed to pass.
In a remarkable moment, Elon Musk, who has never been elected to public office, appeared to be the largest megaphone for the man about to retake the Oval Office. His actions had prompted a backlash from some lawmakers who recoiled at his interference in the legislative process. Some even accused him of acting more like the president or vice president than a billionaire executive.