Far-right leader Marine Le Pen, who holds outsize leverage in France’s split parliament, gave Prime Minister Michel Barnier until Monday to accede to her budget demands before she decides whether to topple the government.

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

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

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.

France's unpopular government is ready to make concessions over next year's budget, Finance Minister Antoine Armand said on Thursday, amid growing concerns that opposition to the bill could topple Prime Minister Michel Barnier's administration.

Barnier's government could fall before Christmas, and perhaps even by next week, if far-right and leftist foes force a no-confidence motion that he is likely to lose, according to a dozen sources from across the political spectrum.

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.

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,

The French government is ready to offer concessions to parliament to get through its budget, the finance minister said Thursday, in a standoff which is causing market turbulence and risks