PM Barnier tells parliament France’s 'colossal' debt is a 'sword of Damocles'
France's new Prime Minister Michel Barnier outlined his policy plans in a much-anticipated speech to parliament on Tuesday. Barnier, who leads a government with no clear majority in parliament, was heckled by left-wing lawmakers throughout his address. Here are the key takeaways from his address.
Reducing public debt
France must slash its budget deficit and trim its tottering debt pile, newly-installed Prime Minister Michel Barnier told lawmakers Tuesday, vowing a combination of higher taxes and spending cuts.
"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," two years later than previously planned, Barnier said, adding that two-thirds of the cuts would come from "reducing spending" but that the government would "ask big companies making large profits to contribute to the recovery".
Paris will also "ask for an exceptional contribution from the wealthiest French people to prevent the tax avoidance strategies of the biggest taxpayers," he added.
"The sword of Damocles hanging over us is our colossal financial debt," Barnier said in a keynote speech to parliament, adding that France's deficit was making France weaker in Europe.
Environmental action
Barnier cited a reduction in France’s greenhouse gas emissions in 2024 as proof that France could take effective action on environmental issues.
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