French student protests pause, pressure builds amid budget deadlock

France’s student protests took a breather on Wednesday after weeks of unrest, but market pressure on the French government intensified ahead of crucial budget negotiations due to start next week.

The student rallies, now stretching into their third week after violent clashes with police, mass school closures and thousands of arrests, are expected to resume on Thursday. What began as a Parisian student protest pressuring the government to address teacher shortages, lengthy timetables and derelict schools has evolved into a nationwide movement that has garnered support from people of various ages.

Prime Minister Sébastien Lecornu said Wednesday morning that officials would use the pause in demonstrations to open dialogue with high school students. He is due to address the nation on Wednesday evening.

“The demands [of students] are numerous and vary from one high school to the next. They must be assessed objectively, school by school,” he said in a post on X on Tuesday. “Substitutes, the state of the buildings, guidance, organization of school time, high school democracy: all topics must be put on the table.”

But he added that conversations must be had “without giving in to politicized manipulations.”

Lecornu’s government has accused radical-left party La France Insoumise (LFI) of hijacking the student movement. Some of the party’s sitting politicians have publicly backed the student protests.

LFI did not respond to CNBC’s request for comment.

In the coming weeks, the French government faces tough budget negotiations, during which it must convince lawmakers in the politically divided National Assembly — which includes the far-right National Rally, the left-wing New Popular Front and Lecornu’s center-right grouping — to agree to a fiscal adjustment worth tens of billions of euros.

Since France’s July 2024 snap election delivered no parliamentary majority, budget disputes have sparked political discord, with two administrations being ousted in no-confidence votes. It took incumbent leader Lecornu until February this year to pass the 2026 budget, which he only achieved by drawing on emergency legislation that allowed him to bypass parliament and force the policy through.

Further political shifts are expected after the presidential election next spring, with far-right candidate Marine Le Pen currently the frontrunner. In a speech on Tuesday, Le Pen pledged to reduce France’s deficit to 3% within 18 months of the election should she win – but critics questioned whether her plans were feasible. The French budget…