French PM Barnier signals tax hikes on wealthy as new government takes over
French Prime Minister Michel Barnier on Sunday said he would avoid broad tax hikes, opting instead for tax increases for high earners, a day before his new government was set to take up its functions. Barnier's first major test will be to narrow the budget shortfall and submit a 2025 budget plan on France's financial situation next month.
Prime Minister Michel Barnier on Sunday opened the door to raising taxes on France’s wealthiest individuals and some big corporations to help close a gaping hole in the public finances, but said he would protect the lower and middle classes.
President Emmanuel Macron’s office this weekend unveiled a right-leaning which he hopes will break the political deadlock that followed a summer snap election. Its most immediate and daunting task will be to put together a budget for 2025 at a time France is struggling to contain a spiralling budget deficit.
“I’m not going to further increase taxes on all French people, neither on the most modest, nor on people who work, nor on the middle classes. But I cannot exclude the wealthiest from the national effort to rectify the situation,” Barnier told France 2 television.
France’s total debt stands at 110% of GDP, or close to 3.2 million euros. Weaker-than-expected tax revenues and higher spending by local governments has left its public sector budget deficit spiralling towards 6.2% of economic output next year if nothing is done to rein it in.
Read more on FRANCE 24 English
Read also:
France's new government under pressure on multiple fronts
Poll finds 52% are satisfied with Macron's choice of Barnier as French PM
A look at key ministers in France's new government line-up
