France's Lecornu Sets Out Agenda After Budget Battle Focuses On Energy And Defence

French Prime Minister

French Prime Minister

Summary
  • Budget passed using constitutional powers after long political deadlock
  • Socialist party abstained in exchange for suspending pension changes
  • Budget aims to cut deficit to 5% and adds €6.5bn to defence
  • Plans include six EDF nuclear reactors and wider renewable investments

France's Lecornu sets out agenda after budget battle, focuses on energy and defence, after his minority government passed the budget using special constitutional powers.

The government survived no-confidence motions after the Socialist party agreed not to oppose it, securing concessions including suspension of Macron's pension changes.

Lecornu said the budget boosts defence spending by €6.5bn and aims to cut the deficit to 5% from 5.4% in 2025.

Plans For Energy Projects And Military Spending

He said work will start on energy projects, including six new nuclear reactors by state-owned EDF and more offshore wind, solar and geothermal.

He also outlined plans to strengthen the military, with a pledge reported to double the defence budget by 2027, and an immediate €6.5bn increase.

Lecornu signalled moves on decentralisation and modernising state medical aid alongside measures to combat fraud and overhaul government IT systems.

The budget ends months of wrangling after the snap election of June 2024 and the fall of prime ministers Michel Barnier and François Bayrou.

Lecornu was appointed in the autumn before resigning and being reappointed to secure the vote, as municipal elections approach and the 2027 presidential contest looms.

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