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Budget 2025: tax increases, job cuts… Who is affected?
While Michel Barnier must pay off the debt of 60 billion euros, a significant reduction in state spending is expected. The jobs of civil servants could be impacted, while a tax increase should affect the wealthiest households.
Bercy is looking for savings. Among the government’s options, there is an increase in taxes for the wealthiest people, the largest companies, or even the non-replacement of retiring civil servants. In 2022, there were more than five million civil servants in the territory. The government says it wants to preserve positions in contact with the public.
In a town hall in the Paris region, a department director anticipates two retirements by the end of the year: “If we also reduce the number of civil registration staff, there are deadlines to respect and if we have fewer agents, it will be very difficult to meet the demand”he worries.
For the executive, certain services can be merged in order to reduce costs. Also, to cover the debt of 60 billion, the Prime Minister plans to tax very large companies: those making more than a billion in profits. Finally, it is planned to tax the wealthiest households, such as couples earning more than 500,000 euros per year. The state budget will be presented to the Council of Ministers next Thursday.
Watch the full report in the video above.