French Prime Minister Michel Barnier on Tuesday laid out his new government’s plans to reduce the national debt, with spending cuts and tax rises in store.
Barnier’s centre-right administration lacks a majority in the National Assembly, France’s lower house of parliament, but he outlined an ambitious budgetary plan to cut the deficit to 5% by the end of 2025.
France has come under pressure from the European Commission for its consistently high government spending, with the national deficit for 2024 expected to reach 6%, far above the EU guideline of 3%.
Barnier said that tax increases should affect wealthy residents and large companies, calling for “an extraordinary contribution from the richest French people.”
However, the main aim of Barnier’s budget is to cut public spending without impacting vulnerable citizens or targeting the health, education and social sectors.
The conservative prime minister, who took office three weeks ago, said spending must become more efficient, while abuse of the system must be combated.
Barnier, a former European Union commissioner, announced he would seek a realignment in French politics when he was appointed by President Emmanuel Macron on September 5.
However, his government, made up largely of Macron’s centrist supporters, could face an immediate vote of no confidence from either the left-wing New Popular Front alliance or Marine Le Pen’s far-right National Rally in the divided National Assembly.
