The French government is ready to offer concessions to parliament to get through its budget, the finance minister said Thursday, in a standoff which is causing market turbulence and risks bringing down the government of Prime Minister Michel Barnier.

The French government is prepared to “make concessions” to get its budget though parliament and avoid a market “storm”, the country’s finance minister said on Thursday, in a stand-off that risks bringing down Michel Barnier,

Gupta and Leigh Thomas PARIS (Reuters) -French Prime Minister Michel Barnier on Thursday scrapped plans to raise electricity taxes in his 2025 budget, reacting to far-right threats to bring the government down in a no-confidence vote unless he eased the burden on the working classes.

The French government is ready to offer concessions to parliament to pass its budget, the finance minister said Thursday, in a standoff which is causing market turbulence and risks bringing down the government of Prime Minister Michel Barnier.

The budget bill lies at the heart of France's political malaise. It seeks to rein in France's spiralling public deficit through 60 billion euros ($62.85 billion) in tax hikes and spending cuts. But it has proven to be kryptonite for Barnier's right-wing government.

French stocks and bonds came under fire on Wednesday, driving the premium the government pays for long-term borrowing to its highest since the euro zone debt crisis of 2012, as investors grew uneasy over the fate of the new government and its budget.

French Prime Minister Michel Barnier said the country faces a “storm” in financial markets if an “unlikely but possible” alliance of lawmakers across the political spectrum rejects his government’s budget proposals and votes it out of power.

French Prime Minister Michel Barnier on Thursday announced a major concession in a bid to end a standoff with the opposition over the budget, which has caused jitters on financial markets and risks bringing down his minority government.

France's unpopular government is ready to make concessions over next year's budget, Finance Minister Antoine Armand said on Thursday, amid growing concerns that opposition to the bill could topple Prime Minister Michel Barnier's administration.