The new French government, led by Prime Minister François Bayrou, convened for its inaugural Council of Ministers on Friday, January 3, 2025. This administration faces several pressing issues, notably the swift adoption of a budget for the year 2025, following the dissolution of the previous government under Michel Barnier

Adoption of the 2025 Budget

The collapse of the Barnier government left France without an approved budget for 2025. The newly appointed Minister of the Economy and Finance, Éric Lombard, has expressed his intention to target a budget deficit “slightly above 5%” for 2025, aiming to protect economic growth. The Bayrou government will need to negotiate with various political forces to pass this crucial budget.

Reconstruction of Mayotte After Cyclone Chido

Cyclone Chido devastated Mayotte in December 2024, causing significant loss of life and material destruction. François Bayrou unveiled a recovery plan for the island, titled “Mayotte Debout,” which includes emergency measures and long-term commitments. An emergency law aimed at aiding reconstruction will be submitted to Parliament in January.

Pension Reform

The pension system remains a sensitive topic in France. François Bayrou has expressed his desire to engage in discussions to find alternative financing solutions to the postponement of the retirement age, as outlined in the controversial 2023 reform. He proposes a nine-month consultation period with political forces and social partners, without suspending the current reform.

Agricultural Crisis

French farmers protested in 2024 against their downgrading and environmental standards, as well as against the EU-Mercosur trade agreement. The Bayrou government will need to provide concrete solutions, notably by reintroducing measures to reduce charges and aid the installation of new operators, initially planned in the 2025 finance bill.

End-of-Life Debate

The dissolution of the National Assembly in June 2024 interrupted the end-of-life bill, a major societal reform of Emmanuel Macron’s second term. The future of this text remains uncertain, especially since François Bayrou has previously expressed reservations about changing the current legislation on this sensitive issue.

Thus, the Bayrou government faces a series of major challenges at the beginning of 2025, requiring swift actions and political compromises to meet the expectations of the French people.