French president abandons electricity tax rise amid pressure from far right

The French government has promised to scrap proposed tax increases on electricity as it scrabbles to calm its far-right rivals and prevent a political crisis that could see the prime minister, Michel Barnier, toppled in a no-confidence vote as early as next week. “I’ve decided not to raise taxes on electricity, ” Barnier told Le Figaro on Wednesday, in a major concession to political opposition groups who are threatening to bring down the unpopular government over its belt-tightening budget. Politicians are locked in a standoff over the 2025 budget which seeks to tackle France’s growing public deficit through €60bn (£50bn) in tax increases and spending cuts. The government could collapse as early as next week if Marine Le Pen’s far-right National Rally party joins parties on the left in a no-confidence vote in parliament. The budget row is the latest chapter in months ofpolitical tensionsince the rightwing Barnier was appointed by the president, Emmanuel Macron, in September to lead a minority government after a summer of political paralysis. Macron shocked France by calling asnap parliamentary electionin June that resulted in a hung parliament divided between three warring groups – the left, the centre and the far right. In this deeply divided political landscape, the budget has yet to be approved by parliament and has been denounced by opposition on all sides. This means Barnier will probably use article 49. 3 of the constitution, which allows a government to force through legislation without a vote in parliament. Barnier could use the article to push through the social security section of the budget as early as next week. This would then allow the opposition to call a vote of no-confidence within days, which the government could lose. Further elements of the budget will be presented over the course of December, increasing the possibility of the government falling by Christmas. Barnier this week took to the evening TV news to warn of “extremely serious and turbulent conditions on financial markets” should that happen. On Wednesday, the French foreign minister, Jean-Noël Barrot, told the TV channel C News: “At a time when war is on our doorstep, when the planet is in turmoil, when China and the United States want to outpace us … those who make the decision to overthrow Barnier’s government and deprive France of a budget will be responsible for the mess and disorder. ” The balance of power now lies with Le Pen, whose anti-immigration party is the biggest single opposition force in parliament and essentially props up the administration by refraining from joining its leftwing rivals in a no-confidence vote. The National Rally, which has gained electoral support from voters struggling with thecost of living, has sought to present itself as a source of stability against the chaos that followed Macron’s snap election and, until now, it has been keen not to be seen to be responsible for plunging France into crisis with a government collapse. But in recent days it has changed tack and piled pressure on Barnier, saying any rises to taxes on electricity were “unacceptable”. If the government did not do more to shield households, small-businesses and pensioners from the budget squeeze, it said, it would consider backing a no-confidence vote alongside the left’s alliance of parties, which includes Jean-Luc Mélenchon’s La France Insoumise, the Socialists, the Communists and the Greens. Marine Le Pen wrote in Le Figarothis week that if the government fell, there would not be a catastrophic “shutdown” and that her party would not accept being made “scapegoats for the incompetence of governments unfit for debate and compromise”. Le Pen’s party president, Jordan Bardella, said on Wednesday his party had won a “victory” when Barnier scrapped the rise in tax on electricity. Le Pen’s growing pressure on the government comes as she faces her own legal problems. Widely seen as the frontrunner in the 2027 presidential race, she now faces the possibility of being barred from running in that election after prosecutors sought a mandatory five-year ban from public office for her alleged role inembezzling EU parliament fundsto pay staff in France. She denies the allegations. A verdict and sentence will be handed down by judges in March 2025. Sacha Houlié, an independent MP who broke away from Macron’s party, said Barnier’s “docile compliance” with Le Pen’s party’s demands “was as sad as it is dangerous”. An Ifop-Fiducial poll for Sud Radiothis week found 53% of French people want Barnier’s government to fall because they are angry about his proposed budget. An Elabe poll forBFM T Vfound 63% felt Macron should resign if Barnier’s government fell. Macron, whose second and final term ends in 2027, has previously ruled out resigning.