“In the effort we are going to make to reduce the debt, 60 billion, there will be a two-thirds reduction in public spending,” Prime Minister Michel Barnier declared Thursday on France 2.
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“We are slowly moving forward in the precision of the measures that are proposed, we are starting to have some measures that are currently far from the amounts that have been proposed”comments Thursday October 3 on franceinfo, Christian Eckert, former Secretary of State in charge of the Budget and Public Accounts under François Hollande, after details provided by Michel Barnier on France 2 in the program “L’Evénement”, regarding savings to be carried out to reduce public spending.
The government announced on Wednesday a tax increase for the wealthiest 0.3% of households, with the ambition of finding 60 billion euros in 2025. More than two thirds of the amount, or 40 billion euros, are supposed to come from spending cuts, and just under a third (20 billion euros) from tax increases.
On France 2, Michel Barnier explained that only “300 companies” would be affected. The effort will be required of those who achieve “more than a billion euros” of turnover. However, Christian Eckert is skeptical, because the measures announced with “eight billion” of levy on “the 300 largest companies” And “two billion on the wealthiest taxpayers” we “is only ten billion”. He doesn’t see “how are we going to find 40 billion euros”regarding spending reductions.
Even if Michel Barnier announces that he intends “merge public services” And “do not replace all civil servants”. These are measures that can “bring back a few tens of millions of euros”believes Christian Eckert.
According to him, “there are intentions that are laudable” but he “doubt that they will be respected”. “Are we going to reduce the budgets of Defense or the Ministry of the Interior? I highly doubt it” And “we want to build prisons, we will have to finance them”. “Will there be a freeze on the salaries of civil servants ?” And “I think that this will be discussed in Parliament in an atmosphere that risks being difficult and not only on the benches of the left because I can already hear the protests” within his own coalition. Michel Barnier “even hinted implicitly that he would probably not escape article 49-3 to have his finance law adopted”.