Reports from French parliamentary sessions and news outlets

French PM Barnier Unveils €60.6 Billion 2025 Budget with Tax Hikes to Tackle Deficit

Oct 10, 2024, 08:52 PM

French Prime Minister Michel Barnier has unveiled a 2025 budget aimed at addressing the country's significant debt and deficit issues. The budget includes plans to raise €8 billion through a surtax on the 440 largest firms and an additional €800 million from taxes on shipping companies over two years. France also plans to sell €300 billion in government bonds next year to finance its budget. The measures include €60.6 billion in budget adjustments, targeting both spending cuts and tax increases, particularly on large corporations and wealthy individuals. The French government aims to reduce the fiscal deficit, which is currently at 6%, despite having the highest tax burden in Europe. The budget is seen as a crucial test for Barnier's administration, which faces political opposition from both the left and the right. Financial markets and neighboring countries are closely watching the developments, as France's fiscal policies could have broader economic implications for the region. President Macron's credibility is also at stake, with concerns about debt sustainability and political divisions adding to the challenges.