France is grappling with a budgetary crisis following the collapse of Michel Barnier's government.

In response, a temporary "special law" has been enacted to keep the state running by allowing tax collection and borrowing.

However, this measure only ensures essential functions and leaves many promised reforms in limbo.

Without a proper 2025 budget, public deficit projections range between 6.1% and 6.4% of GDP, raising concerns about fiscal stability.

While the special law may slightly boost growth to 1.4% in 2025, it risks deepening inequalities, benefiting wealthier households and large corporations.

The new Prime Minister, François Bayrou, aims to pass a full budget by mid-February, but uncertainty looms over its success.