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Public finances: Michel Barnier announces a reduction in spending and tax increases
Public finances: Michel Barnier announces a reduction in spending and tax increases
(France 2)
The Prime Minister unveiled his roadmap during his general policy speech on Tuesday October 1 at the National Assembly. Faced with a heavy deficit and a colossal debt, Michel Barnier indicated he wanted to reduce spending, but also announced an increase in certain taxes.
Since his appointment, the Prime Minister promised a truthful speech on public finances, and he kept his word. During his general policy speech at the National Assembly on Tuesday, October 1, Michel Barnier denounced a very heavy deficit and a colossal debt. He plans to reduce expenses. The Prime Minister did not give details of the planned cuts, but indicated that these savings on spending will represent two thirds of the effort to restore public finances.
Another measure to reduce the public debt and deficit: the increase in certain taxes. The Prime Minister thus announced “participation in collective recovery” of the “large and very large companies which make significant profits”. Again, he did not give details. An exceptional contribution for the wealthiest French people is also planned. The Prime Minister also promised to fight duplication, fraud, abuse and unjustified rents. Michel Barnier hopes to reduce the deficit to 5% in 2025, instead of the 6% planned.
Watch the full report in the video above.