Barnier Unveils Ambitious €60 Billion Budget Plan Amid Political Turmoil and EU Pressure
October 8, 2024Michel Barnier is scheduled to present the 2025 budget, aiming to reduce the public deficit by €60 billion.
The budget seeks to decrease the public deficit from 6.1% of GDP this year to 5% next year, with a goal of reaching the EU's 3% limit by 2029.
The French government is undertaking a significant budgetary effort of €60 billion for the upcoming budget.
Barnier's government is experiencing internal dissent from Macron's supporters regarding proposed economic measures, particularly tax increases.
The Socialist Party criticized the temporary nature of tax increases on large corporations and the wealthy, arguing it fails to provide a long-term solution.
Despite facing internal opposition to proposed spending cuts and tax increases, the government aims to prevent a potential financial crisis and maintain credibility with financial markets and the EU.
Senator Patrick Kanner emphasized that asking for €20 billion temporarily does not adequately address ongoing fiscal challenges.
Some political figures predict that the government may struggle to survive the winter due to the impending budget challenges.
The far-right party, Rassemblement National, chose not to support a recent motion, which contributed to the government's stability.
On the right, Les Républicains plan to propose measures during the budget debate to prevent tax increases and protect pension funds.
Increased pressure from financial markets and EU partners has arisen due to disappointing tax revenues and excessive spending this year.
In his defense, Barnier emphasized the need to control spending, noting that the government is borrowing at higher rates compared to its European neighbors.
Summary based on 52 sources
Get a daily email with more World News stories
Sources
FRANCE 24 • Oct 10, 2024
France’s minority government set to present make-or-break austerity budgetFRANCE 24 • Oct 8, 2024
France’s minority government survives no-confidence vote as far right refuses to back motionRFI • Oct 10, 2024
France’s minority government to present make-or-break austerity budget