Friction in France.


France’s Prime Minister has survived a confidence vote, demanded by the opposition UMP. 234 members of parliament voted to oust the socialist government well short of the required amount.

The vote was triggered when Prime Minister Valls forced through labor market reforms without a vote. The rare constitutional mechanism called 49-3, was last used in 2006, the prime minister feared the text of the legislation might be rejected.

But more trouble lies ahead for the socialist government attempting to stay afloat. Unemployment stands at 10.3%, the government is struggling to reduce its budget deficit that stands at 4.3% of GDP the government will cut €3.6-€3.7bn from this year’s budget. Inflation has also turned negative in January.


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