PARIS (Reuters) – France has asked the European Commission to extend the deadline for submitting a plan to cut the public deficit beyond Sept. 20 to ensure consistency with Paris’s draft 2025 budget, La Tribune du Dimanche newspaper reported on Sunday, citing the finance ministry.
France’s budget deficit could rise unexpectedly this year and next if additional savings are not found, the finance ministry said in a letter to lawmakers earlier this month, as the euro zone’s second-largest economy heads toward a deeper political crisis.
The deteriorating financial situation has led to Paris being subjected to disciplinary action by the European Union and left incoming Prime Minister Michel Barnier facing tough questions as he looks to form a new government and prepare a budget by October 1 with a parliamentary vote of no confidence threatening him.
“France has requested such an extension,” the Finance Ministry was quoted as saying by La Tribune, without specifying the period for which it was requested.
The ministry said this came “to ensure the coherence of the plan and the draft budget for 2025.”
No immediate comment was available from the ministry or the committee.
The deadline of September 20 has not been finalized, and could be extended to October 15 by agreement.
The fiscal deficit means that Barnier’s new government may face difficult choices between cutting spending and raising taxes or losing credibility with France’s EU partners and financial markets.
Macron on Thursday appointed Barnier, 73, a conservative and former Brexit negotiator, as prime minister, capping a two-month search following his decision to call legislative elections that ultimately resulted in a hung parliament.
Barnier said on Saturday he would not be able to work miracles and wanted to restore order to France’s finances.
Netanyahu continued his consultations on Sunday in an effort to form a government, a difficult task given that he faces the possibility of a vote of no confidence.
The left-wing New Popular Front alliance, the largest bloc in parliament, and the far-right National Rally together have a majority and could oust the prime minister in a no-confidence vote if they decide to cooperate.
The National Party has given its tacit approval to Barnier, citing a number of conditions for not supporting a no-confidence vote, making him the de facto kingmaker of the new government.
EU leader Marine Le Pen said on Sunday her party wanted to see Barnier implement measures that would respect the 11 million people who voted for him.
“If the French are forgotten or treated badly in the coming weeks, we will not hesitate to vote against the government,” she told a public meeting in northern France.