French Prime Minister Michel Barnier's Ambitious Tax Reforms to Boost State Revenues

French Prime Minister Michel Barnier plans to implement tax reform measures aimed at raising state revenues by 15-18 billion euros. These measures, which will be outlined in his upcoming speech, include increased taxes on corporations and energy companies, as well as higher income and electricity taxes. Barnier's government faces pressure to address the budget deficit and aims to finalize the 2025 state budget by mid-October.

French Prime Minister Michel Barnier, poised to outline his priorities in a highly anticipated speech, is planning tax measures to bolster state revenues by 15-18 billion euros, according to Le Parisien. Borders government is under pressure to address a significant budget deficit in the euro zone's second-largest economy.

Barnier's proposed measures include an additional 8 billion euros in corporate taxes, and a 3 billion euro levy on energy companies and share buybacks. He also plans to significantly raise income taxes for top earners and increase electricity taxes to generate another 6 billion euros, the paper reports.

The report indicates Barnier intends to delay achieving the euro zone's common 3% deficit target from 2027 to 2029. Budget Minister Laurent Saint-Martin noted last week that the public finance deficit may exceed 6% of economic output, surpassing prior estimates. Barnier is set to present his general policy speech later today at the National Assembly.

(With inputs from agencies.)