France's Bold Fiscal Rescue: Tackling Debt Amidst Market Pressures

France is implementing a stringent budget to address its massive debt and fiscal deficit. The 2025 budget includes 60 billion euros in spending cuts and tax hikes targeting the wealthy and large corporations. France faces pressure from financial markets and the EU, with risks of ratings downgrades.

PARIS—France's Finance Minister Antoine Armand outlined ambitious plans to regain control over the nation's mounting debt by announcing a stringent budget. Set for 2025, the budget aims to cut 60 billion euros in spending while increasing taxes on the wealthy and large corporations.

Amid widespread financial scrutiny, Armand emphasized that the policy isn't tailored to rating agencies but assured citizens that France must act against a spiraling fiscal deficit. Highlighting international concerns, he told France 2 TV about the necessity of the recovery budget presented recently.

Pressure from financial markets and European Union partners has grown on France's government, led by Prime Minister Michel Barnier. Notably, tax revenues have underperformed, exacerbating the fiscal gap. Analysts, including those at Goldman Sachs, expressed skepticism about meeting the 2025 deficit target.

(With inputs from agencies.)