Fighting the budget deficit
Rich French people should pay higher taxes
23.09.2024, 00:11
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France’s new prime minister has made the fight against high national debt one of his priorities. Rich private individuals and large companies are to contribute to the necessary “national effort” by paying more taxes.
After the formation of a government in France, Prime Minister Michel Barnier announced tax increases for wealthy individuals and large companies. “I will not continue to raise taxes for all French people, not for the smallest people, not for working people, not for the middle class. But I cannot exempt the wealthiest from the national effort to improve the situation,” Barnier told the television channel France 2.
France’s total debt is almost 3.2 trillion euros, or 110 percent of gross domestic product (GDP). The public sector budget deficit is heading for 6.2 percent of economic output next year. This means that France is not only violating EU rules, but is also being closely monitored by rating agencies with regard to its creditworthiness. If its credit rating deteriorates, the country would tend to have to pay higher interest on its government bonds. “A large part of our debt is placed on international and foreign markets. We must preserve France’s credibility,” said Barnier. He called for a “national effort” to combat the budget deficit.
Two and a half months after the parliamentary elections, France has had a new government since Saturday. After difficult negotiations due to the lack of a clear majority in parliament, President Emmanuel Macron announced the cabinet, which is dominated by center-right politicians.
The left-wing camp, which won a relative majority in the election, is represented in the government by only one minister: former Socialist MP Didier Migaud, who most recently headed the transparency authority, was appointed Minister of Justice. Several left-wing politicians had turned down offers from conservative Prime Minister Michel Barnier because they reject his political line.
Since the government includes representatives from Macron’s camp as well as several conservatives, it is already under pressure from the left and the far right. The left-wing populists announced a vote of no confidence immediately after the government was appointed. The right-wing populist party Rassemblement National (RN) had announced that it would initially forego a vote of no confidence, but indicated that this was still an option.