By Dominique Vidalon and Michel Rose

PARIS (Reuters) – A panel of French lawmakers were meeting on Thursday to finalize the much-delayed 2025 budget bill, crucial for restoring investor confidence and ensuring government stability.

The seven senators and seven members of parliament engaged in closed-door negotiations seeking a compromise before the bill proceeds to the lower house next week, where it may trigger a motion of no-confidence against the government.

France’s inability to agree on the 2025 budget has alarmed investors and diminished business and household confidence. The government has had to make significant concessions to create a bill with a viable chance of passage.

On Wednesday, socialist party officials escalated tensions by temporarily halting budget talks, protesting remarks made by Prime Minister Francois Bayrou, who indicated that many French people felt “submerged” by immigration.

Although the left-wing lacks a majority on the 14-member panel to obstruct a compromise deal, they could influence the vote against Prime Minister Bayrou in the lower house, where a no-confidence vote could be initiated as early as Wednesday.

Eric Coquerel, from the hard-left LFI party and head of the Finance Commission of the National Assembly, indicated during a press brief that there was little suspense regarding Thursday’s discussions, given the majority of panelists were from the right.

“Given the power balance, one cannot see how a deal could not be reached,” he stated, noting the real struggle will occur in the National Assembly next week when his party will support a no-confidence motion.

NO CONFIDENCE MOTION

The position of Socialist politicians will be pivotal next week, and their actions remain uncertain. Boris Vallaud, leader of Socialist lawmakers in the lower house, conveyed a collaborative spirit, stating he approached the meeting with amendments: “We have only one concern at heart, the country’s interest,” he said.

Other Socialist officials suggested they could still support the no-confidence motion next week if their expectations are unmet.

Even with a deal from the panel, Prime Minister Bayrou faces challenges. He may invoke constitutional powers to push the budget compromise through without a standard vote, potentially igniting a no-confidence motion.

If the Socialists rally behind the motion to oust Bayrou, he may again find himself relying on the far-right lawmaker Marine Le Pen for support. Bayrou’s position remains precarious, especially if Le Pen decides to align with the Socialists in backing the no-confidence motion.