In his first speech to the parliament, France's prime minister (PM) Francois Bayrou stated on Tuesday that the task entrusted to his government is to return the country to stability. He emphasized that France is burdened by excessive debt, and the precarious budget situation is exacting a high price on the nation.
Bayrou noted that the political deadlock situation is not only a financial one but also a political one. He also highlighted the urgent need to reform the country's pension system and announced plans to reopen talks on pension reform with trade unions and employers' groups.
In addition, the French prime minister reaffirmed the government's commitment to maintaining the deficit target of 3% of GDP for 2029 while proposing a 5.4% deficit target for 2025. He also stressed that French companies shouldn't face huge tax increases.