The additional public spending envisaged by the left-wing alliance would reach 150 billion euros by the end of 2027, for revenues also estimated at 150 billion euros.
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He hopes to initiate “a virtuous circle” for the French economy. The New Popular Front presented its economic program on Friday June 21 and unveiled a balanced financing plan, thus responding to its adversaries who accuse it of budgetary headlong rush. According to left-wing figures, additional public spending would reach 150 billion euros at the end of 2027, for revenues also estimated at 150 billion euros, thanks mainly to an increase in taxation.
The New Popular Front highlights two “pillars” of its budgetary policy: “RELAUNCH” consumption and investment to boost growth and “serious financial” relying on “sharing of wealth”. Accused by Gabriel Attal of preparing “a tax bludgeoning”he intends to lower income tax for 92% of French people who earn less than 4,000 euros per month.
Among the key measures of the program is the introduction of a wealth tax (ISF) “with a climatic component”. This one could bring “12 or 13 billion” the first years, before rising to 15 billion, instead of “four five” billion before its transformation by Emmanuel Macron into a tax on real estate wealth, specified the economist Julia Cagé, one of the economic guarantors of the alliance. From 2024, in order to “respond immediately to emergencies”the New Popular Front also intends to implement a tax on superprofits, which would bring in 15 billion euros.
These cumulative 30 billion euros would be used to finance in particular a 10% increase in personal housing allowances, the repeal of pension and unemployment insurance reforms and a 10% increase in the index point for civil servants. Reforms which would cost 25 billion euros, estimates the left.
Concerning the increase in the minimum wage to 1,600 euros, accused by the government and the bosses of representing a danger for employment, the left promised to“help” businesses, citing financial support measures for SMEs and VSEs.
On Thursday, the leader of the rebels, Jean-Luc Mélenchon, gave figures over five years: 200 billion euros in spending and 230 billion in revenue. By projecting the New Popular Front estimates over two additional years, “we are not that far from what is said over five years by Jean-Luc Mélenchon”confirmed LFI candidate Eric Coquerel, outgoing president of the Finance Committee of the National Assembly.