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France’s Political and Economic Change - Dylan D

In late 2024, France saw a huge political change with the introduction of François Bayrou as Prime Minister chosen by President Emmanuel Macron. This change was triggered by the resignation of former Prime Minister Michel Barnier, who stepped down after a vote of no confidence coming from his failing to pass the 2025 budget. The political stalemate left France without a stable government for months, needing action to restore order.

 

The new government, announced by Bayrou in December 2024, is an alliance that includes members from the previous conservative team as well as new and more left winged figures. Key appointments include Gerald Darmanin as Justice Minister, Elisabeth Borne as Education Secretary, and Manuel Valls as Overseas Minister. Jean-Noel Barrot continues as Foreign Secretary, Bruno Retailleau as Interior Minister, Eric Lombard as Economy Minister and Sebastien Lecornu as Defense Minister.

 

The primary cause for this government repair was the failure to pass the 2025 budget, highlighting the extreme political differences within the National Assembly. France's public deficit is expected to exceed 6% of GDP, emphasising the need for a change in policies. The old administration's inability to secure agreement on budgetary matters led to a loss of confidence and shortly after, resignation.

 

Under Bayrou's leadership, the new government have found several key areas to address France's big challenges:

1. Social Welfare Enhancements: An immediate 2% increase in the minimum wage from November 2024, along with supporting first-time homebuyers and low-income earners. The government also plans to revisit pensioners benefits, considering "reasonable and fair" adjustments in collaboration with labor unions.

 2. Public Service Improvements: Initiatives to boost healthcare and education by improving working conditions to attract more professionals, increasing residency positions for doctors, and addressing "medical deserts" by aiding nurses and pharmacists.

 3. Energy Policy: A renewed focus on nuclear energy development with investments in renewable sources like solar power are proposed in order to combat climate change and aid energy security.

 

The impact of these changes on France and its citizens is varied. The emphasis on fiscal discipline should stabilise the economy and investor confidence, which is crucial given the recent credit rating downgrade due to political breakdown. Social welfare improvements are trying to lighten the economical pressures faced by many citizens, while improvements in public services seek to address issues in healthcare and education. However, the government's approach to law enforcement and immigration may spark debates concerning civil liberties and human rights.

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