France faces political crisis two months after elections

France is currently facing a significant political crisis as it remains without a government nearly two months after the second round of snap legislative elections held on July 7. The absence of a prime minister has left outgoing ministers in a precarious position, struggling to manage ongoing affairs while economic forecasts continue to worsen. The draft budget for the summer has already frozen allocations to ministries at €492 billion, indicating a tightening of financial resources. The public accounts deficit is projected to reach 5.6% of GDP in 2024, a concerning increase from earlier estimates of 5.1% and 4.9% in previous months. This deterioration in fiscal health is expected to undermine President Emmanuel Macron's political legacy, as he faces criticism for his economic management. Manuel Bompard, a leader of the far-left France Insoumise party, has publicly condemned the government's approach, suggesting that it is leading the country towards economic hardship. Despite the looming financial challenges, Macron has reiterated his stance against raising taxes, which contrasts with proposals from left-wing parties. A significant decision regarding tax policy is anticipated to be presented in mid-September, which could have far-reaching implications for the government's financial strategy. As the deadline for parliamentary review approaches, the urgency for a functioning government becomes increasingly critical. The law governing budgetary procedures stipulates that parliament has 70 days to study the budget before it is reviewed by the Constitutional Council, emphasizing the need for swift action to address the ongoing crisis.