(Bloomberg) -- Marine Le Pen’s National Rally set out further demands for changes to the French government’s 2025 budget bill after Prime Minister Michel Barnier dropped plans to raise taxes on electricity in a key concession.
“I’ve listened to everyone, taking into account their opinions, their priorities,” Barnier said during a speech in Paris on Thursday about the future of small and mid-size companies as he announced the measure.
Responding in a post on X, National Rally President Jordan Bardella claimed “a victory” and followed up with more demands.
“We can’t just stop there,” he said. “Other red lines remain.”
He called on Barnier to abandon plans to reduce drug reimbursements, call a moratorium on any new or higher taxes, help boost competitiveness for small and medium firms, and index pensions on inflation starting Jan. 1. He also demanded tougher policies on migration and crime.
“These sensible measures are realistic, can be applied rapidly and are expected by the vast majority of French people,” Bardella wrote. “The prime minister can’t remain deaf to them. He has a few days left.”
Barnier’s administration faces the risk of being toppled in the coming weeks as opposition lawmakers threaten to unite in no-confidence votes over its fiscal plans. The left has pledged to table such a motion as soon as next week, which has put the government’s fate in the hands of the National Rally as it would have the deciding votes.
“There are still difficulties,” Le Pen said of the budget in remarks to Le Monde. “It’s Thursday. He has until Monday.”
She maintains her intention to vote for the censure of the government as early as next week, in the event it applies article 49.3 of the Constitution to pass the social security financing bill, she told the paper.
The prospect of a no-confidence vote has pushed investors to sell French assets, driving up the country’s borrowing costs compared with European peers.
Finance Minister Antoine Armand said earlier on Thursday he’s prepared to make concessions on the budget bill to prevent the government from falling.
France’s 10-year yield premium over Germany — a closely watched gauge of risk — fell four basis points on Thursday, which would be its largest decline since July.
Still, that only dents an upward trend in recent months. The spread now stands at 82 basis points compared with fewer than 50 basis points before President Emmanuel Macron called a snap election in June.
Among French banks, Societe Generale’s stock rose 1.8% and BNP Paribas gained 0.9% on Thursday.
Barnier’s concession on electricity taxes means power prices would decrease by 14% from February instead of the 9% previously planned, he said.
--With assistance from Greg Ritchie and Frank Connelly.
(Updates with Le Pen comments to Le Monde from eighth paragraph.)
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