Plan was sticking point between government and the National Rally, which has threatened to topple the prime minister.

Investors are steering clear of French assets after a sudden flare-up in political tension this week, betting that the volatile period is far from over.

Michel Barnier's budget is doomed to fail and his next move may allow his rivals to "bring down the government".

Gupta and Leigh Thomas PARIS (Reuters) -French Prime Minister Michel Barnier on Thursday scrapped plans to raise electricity taxes in his 2025 budget, reacting to far-right threats to bring the government down in a no-confidence vote unless he eased the burden on the working classes.

The French government is prepared to “make concessions” to get its budget though parliament and avoid a market “storm”, the country’s finance minister said on Thursday, in a stand-off that risks bringing down Michel Barnier,