Euro reacts to French PM’s budget crisis
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05 December 2024
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Euro reacts to French PM’s budget crisis
The euro is under strain as French PM Michel Barnier faced a no-confidence vote over a divisive budget plan of tax hikes and spending cuts. If the government collapses, President Macron is expected to appoint a caretaker PM, adding further uncertainty ahead of July elections.
The euro remains under strain as French PM Michel Barnier faced a no-confidence vote over a divisive budget plan of tax hikes and spending cuts. The vote closed at 8:20 p.m. local time.
President Macron is expected to swiftly appoint a caretaker PM if Barnier’s government collapses, ahead of July elections.
Barnier warned that France’s debt burden—€60bn in annual interest, surpassing defense and education budgets—demands tough fiscal reforms regardless of leadership. Maybe every western nation needs to establish a DOGE (Department Of Government Efficiency).
EUR/USD traders now eye key technical levels: resistance near 1.0550, with risks of retesting support at 1.0500 and 1.0450 if momentum fades.
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