France's Budget Dilemma: New Tax Measures on the Wealthy Loom

Prime Minister Michel Barnier considers raising taxes on wealthy individuals and large corporations to address France’s budget deficit, sparing the lower and middle classes. With France’s debt at 110% of GDP, the government faces scrutiny from credit rating agencies. Barnier also addresses pension reform and immigration policy amid political opposition.

Prime Minister Michel Barnier has signalled potential tax hikes for France's wealthiest and major corporations in an effort to address a significant budget deficit. He emphasized that lower and middle-class citizens would not be affected by these increases.

This financial approach follows the unveiling of a right-leaning government by President Emmanuel Macron, tasked with formulating a 2025 budget amid escalating fiscal challenges. France's debt currently stands at 110% of GDP, coming in around 3.2 trillion euros. Increased local government expenditures and weaker tax revenues have contributed to a projected 6.2% budget deficit for next year if left unaddressed.

Michel Barnier also mentioned potential amendments to Macron's pension reforms and a more rigorous approach to immigration issues, asserting the need for a European response. Political opposition from both the left and right threatens the stability of Barnier's government, which lacks a clear majority.

(With inputs from agencies.)