Paris, Jan 29 (Reuters) - French budget negotiations hung in the balance on Wednesday, following the Socialist party's suspension of talks in protest against Prime Minister Francois Bayrou's controversial remarks on immigration, which have jeopardized his government's stability.
The dispute over Bayrou's comments, in which he stated that many French citizens felt "overwhelmed" by immigration, highlights the challenge of his political balancing act. While the far-right National Rally praised his remarks, the Socialists withdrew from budget discussions, putting the bill's passing in jeopardy and casting doubts on Bayrou's leadership.
The Socialists' exit comes at a critical juncture as the 2025 budget bill reaches its final stages. A select group of senators and parliamentarians is scheduled to finalize the text on Thursday before it goes to the lower house on Monday.
Efforts to bring the Socialists back to the negotiation table appeared futile by Wednesday night, as Bayrou stood firm on his remarks. A junior minister stood in for him, defending the comments to senators: We cannot disregard the sentiments expressed by our compatriots, stated Patrick Mignola.
Patrick Kanner, head of the Socialists in the Senate, criticized the government's response as insufficient, stating on BFM TV that talks remain deadlocked for now.
Socialist lawmaker Philippe Brun suggested a potential return to negotiations if Bayrou retracts his statement on immigration, while also pushing for a hike in minimum wage and increased investment in eco-friendly initiatives, among other demands.
Despite tensions, Socialist lawmaker Arthur Delaporte told Reuters that the need to pass the budget might keep the door open for talks. We stand firm on our principles," he asserted. "I believe the pressure posed by a potential no-confidence vote is sufficient to make headway on budgetary matters.
Failure to pass the 2025 budget has unsettled investors and undermined economic confidence, forcing the government to make substantial concessions to ensure bill approval.
In the absence of a majority, the government may resort to constitutional measures to bypass parliamentary procedures, potentially triggering a vote of no-confidence from opposition lawmakers.
Bayrou, who took office as prime minister in December, aims to avoid the fate of his predecessor, Michel Barnier, whose austerity-focused budget faced strong opposition across party lines. Unlike Barnier, who courted the National Rally for support, Bayrou seeks to maintain stability with the backing of the Socialists by compromising on key policies like pension reform and teacher job cuts.
Having survived one no-confidence vote when the Socialist party withheld support, Bayrou navigates a precarious political landscape as budget negotiations hang in the balance.