Portugal Colonial - French govt ready for budget concessions to avoid financial 'storm'

"Whatever differences in values we have, we are today facing an extremely serious situation for the country... we are obviously ready to make concessions to avoid this storm," Economy and Finance Minister Antoine Armand told BFMTV.

Months of political tensions since right-winger Barnier became prime minister in September at the helm of a minority government appointed by President Emmanuel Macron in the wake of this summer's elections are coming to a head over the budget, which has yet to be approved by parliament.

The opposition on all sides of the spectrum have denounced the budget, prompting Barnier to consider brandishing article 49.3 of the constitution which allows a government to force through legislation without a vote in parliament.

It is widely expected that Barnier could employ this tactic in the National Assembly as soon as Monday, which would push the legislation through but also allow the opposition to call a vote of no confidence within days.

Marine Le Pen's far right National Rally (RN) has warned it is ready to team up in an unholy alliance with the left-wing bloc in parliament and find enough numbers to topple the government in such a vote.

Among the concessions evoked by Armand is an increase on the tax on electricity, deemed as "unacceptable" by the RN.

Armand told the opposition that "just because we have nothing in common" does not mean "that we plunge the country into budgetary and financial uncertainty".

- Calls for Macron to go -

Further complicating the situation is the constitutional rule in France that there must be a one year gap between legislative elections -- meaning that Macron cannot call fresh elections until the summer to resolve what would be a major political crisis.

Some voices are even evoking the possibility that Macron, whose term ends in 2027, should resign to take responsibility for the chaos and break the deadlock. The president has previously explicitly ruled this out.

"The problem is the political chaos unleashed by the president," said Charles de Courson, MP for the centrist Liot faction.

Whoever is next prime minister "will not have a majority. The only solution would be for the president to resign," he said.

According to an Elabe poll for BFMTV, 63 percent of French people believe Macron should resign if the government is toppled, with 53 percent holding him responsible for the current political situation.

V.Dantas--PC