French lawmakers reached a preliminary agreement on the 2025 budget in a joint committee on Friday, calming market concerns.

The deal, which includes concessions to socialists, aims to reduce the deficit to 5.4% of GDP by 2025. However, the budget still faces hurdles, with votes in both chambers next week and potential use of Article 49.3 to bypass opposition.

Critics, including the far-left and far-right, have labeled the budget austere, citing significant cuts and reduced revenues compared to previous proposals.

If rejected, market confidence could plummet, as seen in past political crises.

The government remains optimistic but acknowledges the fragility of the agreement.