New PM Barnier Faces Tax Hikes, Budget Cuts, and Political Turmoil in Government Formation
September 21, 2024Marine Le Pen has dismissed attempts to unseat the government as unlikely to succeed due to fragmentation within the left.
He warned that the existing budget constraints may require higher taxes, despite the potential backlash from voters.
Concerns have been raised about a lack of communication from Matignon, the Prime Minister's office, during this critical period of budget negotiations.
Michel Barnier, the newly appointed Prime Minister of France, is currently engaged in discussions with President Emmanuel Macron about forming a new government team.
During a recent address, Barnier described the country's budgetary situation as 'very grave,' emphasizing the need for urgent action.
Critics argue that recent tax reductions have disproportionately favored the wealthy and businesses, leaving most households with minimal support.
The government is facing significant budget cuts, including a 19.4% reduction in public development aid, amounting to a loss of 1.3 billion euros.
The government's overarching goal is to support economic growth while simultaneously reducing public debt, particularly ecological debts.
Pierre Moscovici, President of the Court of Auditors, has stated that the public deficit target for 2024 is unlikely to be met, citing lower-than-expected tax revenues.
Despite appearing powerful, the right-wing faction has recognized its limited control amid ongoing political divisions.
The National Rally party has expressed opposition to tax increases but may support certain taxes if they are aimed at protecting the middle class and small businesses.
The political landscape remains tumultuous, with citizens increasingly turning to parties like the National Rally and La France Insoumise, or choosing to abstain from voting.
Summary based on 129 sources
Get a daily email with more EU News stories
Sources
Yahoo News • Sep 19, 2024
French PM has formed government, Paris says weeks after snap electionYahoo News • Sep 18, 2024
Reports: New French premier clashes with Macron's centrist campYahoo News • Sep 18, 2024
French budgetary situation 'very serious': prime ministerFRANCE 24 • Sep 18, 2024
France's budgetary situation is 'very serious', new PM Barnier says