Budget 2025: tensions between Gabriel Attal and Michel Barnier, coalition in crisis… the government's project is controversial

Fears in the form of criticism: Gabriel Attal feared on Wednesday “too many taxes” and “not enough reforms” on the eve of the presentation of the Barnier government's draft budget, a further hitch in the government coalition while the Macronists and the right have further fractured in the Assembly.

If the president of the Ensemble pour la République (EPR) group mentioned “a full and complete agreement on the direction” drawn up by Michel Barnier, the former Prime Minister also expressed his “fear” that “the budget that seems to be taking shape does not include enough reforms and too many taxes”, during a press conference.

Mr. Attal defended himself against any desire to “polemicize” with a government that includes many ministers from the Macronist ranks. But relations are cool between his group and Michel Barnier, as was once again demonstrated by the agitated group meeting on Tuesday in the presence of the new Prime Minister.

The disagreement between Renaissance and the Les Républicains (LR) party was also once again manifested in a spectacular manner on Thursday, during an election for the presidency of the Economic Affairs Committee in the National Assembly, ultimately won by LFI MP Aurélie Trouvé, the agreement between Gabriel Attal and Laurent Wauquiez for the distribution of key positions in Parliament having been broken off.

The fratricidal exchange of arms between the two leaders, partners in the government coalition, has irritated Michel Barnier, who has made known "his concern" faced with a "solidarity" from his allies "which had not been there".

Gabriel Attal has for his part privately denounced a "disastrous" project of the right, a sequence which according to him comes "to weaken trust", while calling not to fall "into a trap" and to focus on "the interest of the country".

Regarding the budget, the former tenant of Matignon considered that “the planned increase in charges for businesses, the higher than expected increase in electricity, the six-month freeze on pensions and other tax measures [seemed to him] to overload the boat for the French”, suggesting instead the resumption of his unemployment insurance reform, on which Mr. Barnier preferred to give control back to the social partners.

The 2025 finance bill (PLF), which is to be presented on Thursday to the Council of Ministers, provides for 40 billion euros in savings on expenditure and 20 billion in additional revenue via tax increases and increases in social security contributions, mainly for companies.

"We will protect the most vulnerable communities"

“Everyone tends to have ideas for savings from others and to reject them at home: everyone must stop playing the game of knocking things over with all the savings avenues that are on the table”, otherwise, “in the end, we will continue this infernal spiral of debt”, warned the governor of the Bank of France, François Villeroy de Galhau.

In the government's sights, local authorities, angry about a possible effort of 5 billion euros. “The State asks others to assume its own turpitudes and this is not acceptable", criticized the president of the Association of Mayors of France, David Lisnard (LR). "We will protect the most fragile communities", but "the effort must be shared", Michel Barnier tried to reassure before the Senate.

Former Environment Minister Christophe Béchu, close to Édouard Philippe, for his part regretted the planned reduction of 1.5 billion euros in the Green Fund, “the subsidy used to accelerate the ecological transition” for local authorities.

SMEs are protesting against any partial questioning of reductions in employer contributions or aid for hiring apprentices, “an increase in the cost of labor”, said the Secretary General of the CPME, Jean-Eudes du Mesnil du Buisson. The Prime Minister must also deal with mood swings within his own team.

Education Minister Anne Genetet demanded on Sunday that the school budget be “protected”, while Minister of Justice Didier Migaud warned on Tuesday that the credits granted to Justice “would not be satisfactory”, while affirming that he was “mobilized” to ensure that commitments regarding staffing levels “are held" — which was confirmed by government spokesperson Maud Bregeon, as well as those of the Interior and Defense.

Faced with protests, the government repeats that its proposals "are not set in stone", provided that the deficit reduction is achieved.