French PM vows more taxes and spending cuts to reduce 'colossal' debt
Prime Minister Michel Barnier pledged new taxes and public spending cuts to reduce a "colossal" debt, in a policy address to the French parliament. France's debt reached more than 110 percent of GDP in the second quarter of 2024.
"Our aim is to reduce the deficit to five percent [of GDP] in 2025, on the right path to reach the three-percent ceiling in 2029," meeting the European Union target two years later than previously planned, Barnier said as he laid out his government's policy programme.
He called France's "colossal" debt of over 3.2 trillion euros - more than 110 percent of GDP - "the true sword of Damocles [...] hanging over the head of France and of every French person".
He said that two-thirds of deficit reduction would come from slashing spending from its present 57 percent of GDP - far above the 49-percent European average.
However, while France has "among the highest taxes in the world," there would be "a time-limited effort that must be shared, with an insistence on tax justice" or equitably sharing the burden, Barnier added.
Highly-profitable big companies and wealthy individuals would both be called on to pay more, he said.
France to consider corporate tax increase to lower budget deficit
'Red lines'
He called out "a second sword of Damocles that is just as terrible: the environmental debt we are leaving as a legacy to our children".
France would bet on both its traditional strength in nuclear power and renewables to reduce carbon emissions, he said.
(with AFP)
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