French Finance Minister Warns of Economic Fallout from Government Instability

French Finance Minister Eric Lombard has warned that last month's government collapse has adversely impacted the nation's economy, causing a stagnation in investment and recruitment. Speaking on the consequences, Lombard estimated that France could lose 0.3% of economic growth and €6 billion in fiscal revenue due to the political turmoil.Despite the setback, the newly appointed government in December 2024 narrowly survived a no-confidence vote in the National Assembly. The support of abstaining votes from the far-right and most of the Socialist party played a crucial role in averting a collapse. Lombard also highlighted his involvement in negotiating key concessions to the Socialists, aiming to stabilize the political and economic environment.