France is facing a significant political and economic crisis as the government struggles to pass a crucial budget for 2024. The rejection of the budget by the National Assembly has led to a political deadlock, with the government of Prime Minister Michel Barnier on the brink of collapse.
The failure to pass the budget has halted foreign investments and created uncertainty among investors, potentially reducing France's GDP growth by 0.1% in 2024 and 0.3% in 2025. The government is now considering a special law to ensure the continuity of public services, as the political turmoil threatens to destabilize the country's economy further.
The situation has sparked intense debates in the political arena, with opposition parties criticizing the government's handling of the budget crisis.