France's Prime Minister Francois Bayrou is struggling to pass his budget. AFP
France's Prime Minister Francois Bayrou is struggling to pass his budget. AFP
France's Prime Minister Francois Bayrou is struggling to pass his budget. AFP
France's Prime Minister Francois Bayrou is struggling to pass his budget. AFP

France’s Francois Bayrou set to risk no-confidence motion by forcing budget through Parliament


Sunniva Rose
  • English
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French Prime Minister Francois Bayrou is expected to force through his government's budget without a parliamentary vote on Monday, raising the prospect of a no-confidence motion from the socialist party.

This will be the first time since his nomination in mid-December that Mr Bayrou will use a controversial parliamentary mechanism known as article 49.3, which allows him to push through laws without a parliamentary majority.

But it also comes with risks. His predecessor, Michel Barnier, had to step down after political parties made an alliance to topple his government after he tried to force through pension reform. The president of the socialist group at the National Assembly, Boris Vallaud, has said that a no-confidence motion "remains a possibility." Mr Bayrou is also set to invoke article 49.3 to force through the social security budget later in the week.

Government negotiators have focused on convincing the socialists not to join a no-confidence motion, which the leftist party France Unbowed has already that it will support. In December, the far-right National Rally (RN) allied with the left to topple Mr Barnier.

French politics has been engulfed in turmoil since a European election in June that nearly resulted in the far right taking over the government. There was no clear majority in Parliament after the ensuing snap election, which has weakened the position of President Emmanuel Macron and led to the resignation of two prime ministers.

The new no-confidence vote should take place on Wednesday. It will be closely scrutinised because new legislative elections cannot take place until at least one year after the previous election. The fall of Mr Bayrou's government would create an unprecedented crisis.

Boris Vallaud, president of the socialist parliamentary group. AFP
Boris Vallaud, president of the socialist parliamentary group. AFP

There is little patience left among the population for political theatrics, warned government spokeswoman Sophie Primas. "It's the responsibility of political parties to listen to the people," Ms Primas told the national broadcaster France 2.

In a last-ditch concession to the socialists, Labour and Health Minister Catherine Vautrin promised on Saturday to triple funds allocated to elderly people's housing projects, which are known by their French acronym, Ehpad. The government also made concessions to centrists and right-wing politicians with a pledge to fight health benefits fraud.

"The government's logic is the outstretched hand and not the ultimatum. But there comes a time when we will have to know when to stop. Our country needs a budget to move forward," Ms Vautrin told the daily Le Parisien.

Some socialist politicians appear to have welcomed the government's negotiations efforts and have said they will not back a no-confidence motion. While the text does not meet the group's expectations, socialist politician Jerome Guedj told Le Monde that he would call on his fellow politicians not to vote against it and welcomed the extra €6 billion allocated to the health sector since talks over the budget started last autumn.

Former socialist prime minister Lionel Jospin argued this weekend that the socialists should not back a no-confidence motion. "The administration would no longer be managed, and in the dramatic financial situation we are in, there would be neither a budget nor a law on financing Social Security," he said.

One RN deputy, Jean-Philippe Tanguy, told the broadcaster France 3 that the budget being proposed was "worse" than not having one, and said he personally wanted to back a motion of no confidence. But it will be for Marine Le Pen, who leads the RN faction in the National Assembly, and party leader Jordan Bardella to decide, he added.

Ten tax points to be aware of in 2026

1. Domestic VAT refund amendments: request your refund within five years

If a business does not apply for the refund on time, they lose their credit.

2. E-invoicing in the UAE

Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption. 

3. More tax audits

Tax authorities are increasingly using data already available across multiple filings to identify audit risks. 

4. More beneficial VAT and excise tax penalty regime

Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.

5. Greater emphasis on statutory audit

There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.

6. Further transfer pricing enforcement

Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes. 

7. Limited time periods for audits

Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion. 

8. Pillar 2 implementation 

Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.

9. Reduced compliance obligations for imported goods and services

Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations. 

10. Substance and CbC reporting focus

Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity. 

Contributed by Thomas Vanhee and Hend Rashwan, Aurifer

Ain Dubai in numbers

126: The length in metres of the legs supporting the structure

1 football pitch: The length of each permanent spoke is longer than a professional soccer pitch

16 A380 Airbuses: The equivalent weight of the wheel rim.

9,000 tonnes: The amount of steel used to construct the project.

5 tonnes: The weight of each permanent spoke that is holding the wheel rim in place

192: The amount of cable wires used to create the wheel. They measure a distance of 2,4000km in total, the equivalent of the distance between Dubai and Cairo.

Winners

Ballon d’Or (Men’s)
Ousmane Dembélé (Paris Saint-Germain / France)

Ballon d’Or Féminin (Women’s)
Aitana Bonmatí (Barcelona / Spain)

Kopa Trophy (Best player under 21 – Men’s)
Lamine Yamal (Barcelona / Spain)

Best Young Women’s Player
Vicky López (Barcelona / Spain)

Yashin Trophy (Best Goalkeeper – Men’s)
Gianluigi Donnarumma (Paris Saint-Germain and Manchester City / Italy)

Best Women’s Goalkeeper
Hannah Hampton (England / Aston Villa and Chelsea)

Men’s Coach of the Year
Luis Enrique (Paris Saint-Germain)

Women’s Coach of the Year
Sarina Wiegman (England)

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Director: James Cameron

Starring: Sam Worthington, Sigourney Weaver, Zoe Saldana

Rating: 4.5/5

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Main camera: 12MP wide, f/1.8, digital zoom up to 5x, Smart HDR 4

Front camera: 12MP ultra-wide, f/2.4, Smart HDR 4, full-HD @ 25/30/60fps

Biometrics: Touch ID, Face ID

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In the box: iPad mini, USB-C cable, 20W USB-C power adapter

Price: From Dh2,099

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Results

6.30pm: Mazrat Al Ruwayah – Group 2 (PA) $36,000 (Dirt) 1,600m, Winner: RB Money To Burn, Tadhg O’Shea (jockey), Eric Lemartinel (trainer)

7.05pm: Handicap (TB) $68,000 (Turf) 2,410m, Winner: Star Safari, William Buick, Charlie Appleby

7.40pm: Meydan Trophy – Conditions (TB) $50,000 (T) 1,900m, Winner: Secret Protector, William Buick, Charlie Appleby

8.15pm: Al Maktoum Challenge Round 2 - Group 2 (TB) $293,000 (D) 1,900m, Winner: Salute The Soldier, Adrie de Vries, Fawzi Nass

8.50pm: Al Rashidiya – Group 2 (TB) $163,000 (T) 1,800m, Winner: Zakouski, William Buick, Charlie Appleby

9.25pm: Handicap (TB) $65,000 (T) 1,000m, Winner: Motafaawit, Sam Hitchcock, Doug Watson

Dubai works towards better air quality by 2021

Dubai is on a mission to record good air quality for 90 per cent of the year – up from 86 per cent annually today – by 2021.

The municipality plans to have seven mobile air-monitoring stations by 2020 to capture more accurate data in hourly and daily trends of pollution.

These will be on the Palm Jumeirah, Al Qusais, Muhaisnah, Rashidiyah, Al Wasl, Al Quoz and Dubai Investment Park.

“It will allow real-time responding for emergency cases,” said Khaldoon Al Daraji, first environment safety officer at the municipality.

“We’re in a good position except for the cases that are out of our hands, such as sandstorms.

“Sandstorms are our main concern because the UAE is just a receiver.

“The hotspots are Iran, Saudi Arabia and southern Iraq, but we’re working hard with the region to reduce the cycle of sandstorm generation.”

Mr Al Daraji said monitoring as it stood covered 47 per cent of Dubai.

There are 12 fixed stations in the emirate, but Dubai also receives information from monitors belonging to other entities.

“There are 25 stations in total,” Mr Al Daraji said.

“We added new technology and equipment used for the first time for the detection of heavy metals.

“A hundred parameters can be detected but we want to expand it to make sure that the data captured can allow a baseline study in some areas to ensure they are well positioned.”

Updated: February 03, 2025, 2:06 PM