The initial proposal was that they wanted to reduce the reimbursements, so they’re now abandoning their plan in pursuing that. This was a sticking point in negotiations for the budget and the far-right had used this as a key factor in pushing for a no confidence motion against Michel Barnier’s government. We’ll see if it will be enough though.
The CAC 40 index has now turned higher on the day, up 0.3%. It was down over 1% at the open before keeping lower by around 0.2% before this as European indices recovered slightly after the poor start.
This article was written by Justin Low at www.forexlive.com.
