French Prime Minister Michel Barnier on Tuesday outlined his new government’s plans to reduce the national debt, with spending cuts and tax increases on the horizon.
Barnier’s center-right government does not have a majority in the National Assembly, France’s parliament, but he outlined an ambitious budget plan to cut the budget deficit to 5 percent by the end of 2025.
France is under pressure from the European Commission over its persistently high public spending, with the national deficit expected to reach 6% in 2024, well above the EU guideline of 3%.
Barnier said tax increases should hit wealthy residents and big companies, calling for “an extraordinary contribution from the richest French people.”
However, the main aim of Barnier’s budget is to cut public spending without affecting vulnerable citizens or focusing on the health, education and social sectors.
The Conservative Prime Minister, who took office three weeks ago, said spending must become more efficient while tackling abuses of the system.
Barnier, a former European Union commissioner, announced he would seek a reshuffle in French politics when he was appointed by President Emmanuel Macron on September 5.
However, his government, made up largely of Macron’s centrist supporters, could face an immediate vote of no confidence from the left-wing alliance New Popular Front or Marine Le Pen’s far-right National Rally in the divided National Assembly.