France's Tax Hike Overhauls: Barnier’s Bold Policy Speech

France's new Prime Minister Michel Barnier, to address parliament with his policy plans, is considering tax hikes of up to 18 billion euros to fill a public finance gap. His minority government faces opposition from within and outside, jeopardizing France's economic credibility and meeting EU deficit targets.

France's newly appointed Prime Minister, Michel Barnier, is poised to announce significant tax hikes to address a substantial public finance shortfall. Preliminary reports suggest Barnier's strategy includes raising up to 18 billion euros through various taxes.

Barnier's challenges are compounded by a fragmented parliament and internal government strife, complicating the passage of necessary reforms. The nation's financial standing with European Union partners and financial markets, already under strain due to rising borrowing costs, hangs in the balance.

Details from Le Parisien and Le Monde indicate proposed increases targeting corporations, energy companies, and high-income earners. Although Barnier's office did not comment, Budget Minister Laurent Saint-Martin recently highlighted a greater-than-expected deficit, with risks of it surpassing 6% of GDP.

(With inputs from agencies.)