France Balances Green Initiatives with Fiscal Prudence

France plans to cut research funds for green technology while hiking gas and electricity taxes. The government aims to balance household bills with promoting renewable energy. Budget proposals include spending cuts and tax hikes targeting the wealthy, big companies, and polluting energy sources.

In a strategic move, France has announced cuts to research funds for green technology, alongside increased taxes on gas and electricity to stimulate a broader adoption of renewable energy sources.

Energy Minister Agnes Pannier-Runacher emphasized the need to avoid subsidizing polluting energy solutions. The proposed budget includes significant spending cuts and increased taxes on the wealthy, as well as corporate giants, in order to tackle the country's mounting fiscal deficit.

The new energy ministry budget, rising to 21.95 billion euros, aims to reinstate support for renewables while adjusting tax laws affecting polluting cars and private jets. Despite these tax hikes, power bills for most consumers are expected to decrease by 9% due to falling wholesale prices.

(With inputs from agencies.)