French Senate approves 2025 budget

The French Senate approved the 2025 budget on Thursday, sending it to the constitutional council for review.

If approved, President Emmanuel Macron can sign it into law, concluding a political standoff that led to a government collapse and unsettled markets.

The budget aims to reduce the deficit by cutting spending and increasing taxes on high earners and corporations. Prime Minister Francois Bayrou used special constitutional powers to push it through after his predecessor’s government failed to pass a budget in 2024.

In December, lawmakers passed a temporary law to keep core government functions running and avoid a shutdown. However, the process will begin again in the coming months as preparations for the 2026 budget take shape.