Macron is set to appoint new French prime minister in last-ditch move to tackle turmoil
Paris (AP): After a week of intense political turmoil, French President Emmanuel Macron is set to appoint a new prime minister on Friday in his latest bid to break the political deadlock that has gripped the country for more than a year, as France struggles with mounting economic challenges and ballooning debt.
The appointment is widely seen as the president's last chance to revive his second term, which runs until 2027. With no majority in the National Assembly to push through his agenda, Macron faces increasingly fierce criticism, even from within his own camp, and has little room to manoeuvre.
Outgoing Prime Minister Sebastien Lecornu abruptly resigned on Monday, only hours after unveiling a new Cabinet. The shock resignation prompted calls for Macron to step down or dissolve parliament again. But they remained unanswered, with the president instead announcing on Wednesday that he would name a successor within 48 hours.
Over the past year, Macron's successive minority governments have collapsed in quick succession, leaving the European Union's second-largest economy mired in political paralysis as France is faced with a debt crisis. At the end of the first quarter of 2025, France's public debt stood at 3.346 trillion euros (USD 3.9 trillion), or 114 per cent of gross domestic product.
France's poverty rate also reached 15.4 per cent in 2023, its highest level since records began in 1996, according to the latest data available from the national statistics institute.
The economic and political struggles are worrying financial markets, ratings agencies and the European Commission, which has been pushing France to comply with EU rules limiting debt.
Uncertainty surrounds the choice of the next PM
Macron may turn to a figure from the left, who managed to form a coalition in the 2024 legislative elections, or opt for a technocratic government to sidestep partisan deadlock.
In any case, the new prime minister will have to seek compromises to avoid an immediate vote of no confidence and may even be forced to abandon the pension reform that gradually raises the retirement age from 62 to 64. Macron fought fiercely for the deeply unpopular measure, which was enacted into law in 2023 despite mass protests.
Lecornu argued that Macron's centrist bloc, its allies, and parts of the opposition could still rally to form a working majority. “There's a majority that can govern,” he said. “I feel that a path is still possible. It is difficult.”
The stalemate stems from Macron's shock decision in June 2024 to dissolve the National Assembly. The snap elections produced a hung parliament, with no bloc able to command a majority in the 577-seat chamber. The gridlock has unnerved investors, infuriated voters, and stalled efforts to curb France's spiralling deficit and public debt.
Without stable support, Macron's governments have stumbled from one crisis to the next, collapsing as they sought backing for unpopular spending cuts. Lecornu's resignation, just 14 hours after announcing his Cabinet, underscored the fragility of the president's coalition amid deep political and personal rivalries.
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What is Tax Holiday announced for foreign cloud firms till 2047 in Union Budget
New Delhi: Finance Minister Nirmala Sitharaman on Sunday announced a major tax incentive aimed at attracting global cloud service providers to set up and expand their operations in India. Under the Union Budget proposals, foreign companies that offer cloud services worldwide by using data centres located in India will be granted a tax holiday until 2047.
Announcing the measure, Sitharaman said the move is intended to draw global investment into India’s digital infrastructure, generate employment and strengthen the country’s role in the global digital economy.
A tax holiday is a policy tool used by governments to encourage investment. It involves a temporary reduction or complete exemption from certain taxes, usually corporate or income tax, for a defined period. Such incentives are often offered to promote specific sectors, boost economic activity and create jobs.
Under the new proposal, foreign cloud service providers will be allowed to operate globally using data centres based in India, but services to Indian customers must be routed through an Indian reseller entity. This structure is meant to ensure local participation and regulatory oversight while still allowing global companies to base their infrastructure in India.
Indian companies that provide data centre services to these foreign firms will receive a safe harbour tax rate of 15 per cent. Safe harbour provisions offer certainty on tax liability by fixing profit margins in advance, reducing disputes and making it easier for businesses to plan their operations.
The Budget also includes measures linked to electronic manufacturing. Non-resident companies will be allowed to use bonded warehouses in India to store components. These entities will be taxed on a profit margin of just 2 per cent of the invoice value, translating to an effective tax rate of around 0.7 per cent. The government says this rate is significantly lower than what is offered by many competing countries.
Explaining the rationale behind the move, Sitharaman said the policy would encourage large-scale investment in data centres and related infrastructure, create local jobs and help India emerge as a global hub for digital and cloud services.
