PARIS: According to the recently appointed finance minister, France currently has “one of the worst” public deficits in its modern history. To address this, additional taxes on the affluent and large corporations are being considered.
In an effort to reduce government overspending, Antoine Armand continued, stating that he would be speaking with economic actors such as unions and bosses’ organizations.
This year, the deficit is predicted to be at least 5.6% of the country’s GDP, or nearly double the ceiling set by the European Union. “We have one of the worst deficits in our history, aside from one or two exceptional crisis years in the last 50 (years),” Armand said to broadcaster France Inter.
“That level of difficulty is the situation.” In the upcoming months, the new administration led by conservative Prime Minister Michel Barnier will have to navigate a challenging legislative agenda. The lower chamber of the National Assembly, which is basically divided into three following the unresolved snap election in July, is where ministers must attempt to get a 2025 budget containing measures to fix the public finances through.
Barnier has the backing of conservatives and the significantly diminished camp of President Emmanuel Macron; yet, if they band together, the far-right National Rally (RN) and the left-wing NFP alliance might overthrow the government at any moment in a confidence vote.
As part of a strategy to turn things around, the prime minister mentioned “targeted” tax increases on “wealthy people or some large companies” in an interview on Sunday. Barnier is anticipated to release his draft budget early in the next month, which is a record departure from the customary October 1 date given that Macron took the entire summer to appoint a new head of state.
