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.
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.
HAJJAN
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Have you been targeted?
Tuan Phan of SimplyFI.org lists five signs you have been mis-sold to:
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4. The adviser charges a 1 per cent charge for managing your assets. They are being paid for doing nothing. They have already claimed massive amounts in hidden upfront commission.
5. Total annual management cost for your pension account is 2 per cent or more, including platform, underlying fund and advice charges.
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At a glance - Zayed Sustainability Prize 2020
Launched: 2008
Categories: Health, energy, water, food, global high schools
Prize: Dh2.2 million (Dh360,000 for global high schools category)
Winners’ announcement: Monday, January 13
Impact in numbers
335 million people positively impacted by projects
430,000 jobs created
10 million people given access to clean and affordable drinking water
50 million homes powered by renewable energy
6.5 billion litres of water saved
26 million school children given solar lighting
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The specs
Engine: 3.0-litre six-cylinder turbo
Power: 398hp from 5,250rpm
Torque: 580Nm at 1,900-4,800rpm
Transmission: Eight-speed auto
Fuel economy, combined: 6.5L/100km
On sale: December
Price: From Dh330,000 (estimate)
EA Sports FC 26
Publisher: EA Sports
Consoles: PC, PlayStation 4/5, Xbox Series X/S
Rating: 3/5
Everton 1 Stoke City 0
Everton (Rooney 45 1')
Man of the Match Phil Jagielka (Everton)
Company profile
Name: Infinite8
Based: Dubai
Launch year: 2017
Number of employees: 90
Sector: Online gaming industry
Funding: $1.2m from a UAE angel investor
Avatar: Fire and Ash
Director: James Cameron
Starring: Sam Worthington, Sigourney Weaver, Zoe Saldana
Rating: 4.5/5
THURSDAY'S ORDER OF PLAY
Centre Court
Starting at 10am:
Lucrezia Stefanini v Elena Rybakina (6)
Aryna Sabalenka (4) v Polona Hercog
Sofia Kenin (1) v Zhaoxuan Yan
Kristina Mladenovic v Garbine Muguruza (5)
Sorana Cirstea v Karolina Pliskova (3)
Jessica Pegula v Elina Svitolina (2)
Court 1
Starting at 10am:
Sara Sorribes Tormo v Nadia Podoroska
Marketa Vondrousova v Su-Wei Hsieh
Elise Mertens (7) v Alize Cornet
Tamara Zidansek v Jennifer Brady (11)
Heather Watson v Jodie Burrage
Vera Zvonareva v Amandine Hesse
Court 2
Starting at 10am:
Arantxa Rus v Xiyu Wang
Maria Kostyuk v Lucie Hradecka
Karolina Muchova v Danka Kovinic
Cori Gauff v Ulrikke Eikeri
Mona Barthel v Anastasia Gasanova
Court 3
Starting at 10am:
Kateryna Bondarenko v Yafan Wang
Aliaksandra Sasnovich v Anna Bondar
Bianca Turati v Yaroslava Shvedova
The specs: 2017 Dodge Viper SRT
Price, base / as tested Dh460,000
Engine 8.4L V10
Transmission Six-speed manual
Power 645hp @ 6,200rpm
Torque 813Nm @ 5,000rpm
Fuel economy, combined 16.8L / 100km
Draw:
Group A: Egypt, DR Congo, Uganda, Zimbabwe
Group B: Nigeria, Guinea, Madagascar, Burundi
Group C: Senegal, Algeria, Kenya, Tanzania
Group D: Morocco, Ivory Coast, South Africa, Namibia
Group E: Tunisia, Mali, Mauritania, Angola
Group F: Cameroon, Ghana, Benin, Guinea-Bissau
UPI facts
More than 2.2 million Indian tourists arrived in UAE in 2023
More than 3.5 million Indians reside in UAE
Indian tourists can make purchases in UAE using rupee accounts in India through QR-code-based UPI real-time payment systems
Indian residents in UAE can use their non-resident NRO and NRE accounts held in Indian banks linked to a UAE mobile number for UPI transactions
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
Company profile
Name: Oulo.com
Founder: Kamal Nazha
Based: Dubai
Founded: 2020
Number of employees: 5
Sector: Technology
Funding: $450,000
LIST OF INVITEES
Shergo Kurdi (am)
Rayhan Thomas
Saud Al Sharee (am)
Min Woo Lee
Todd Clements
Matthew Jordan
AbdulRahman Al Mansour (am)
Matteo Manassero
Alfie Plant
Othman Al Mulla
Shaun Norris