Newly appointed French Prime Minister Michel Barnier has clashed with the centrist camp of President Emmanuel Macron over tax hikes, French media reported on Wednesday.
The disagreement revolves around Barnier’s consideration of tax increases, a departure from the previous government’s position.
Barnier, a former EU commissioner, cited the poor state of public finances as justification for his proposal, which drew criticism from within Macron’s camp.
“The budgetary situation of the country, which I am now discovering, is very serious,” Barnier told French media. “This situation requires more than just small talk. It requires responsibility.”
The political landscape in France remains unstable after recent early parliamentary elections, which failed to produce a clear majority or coalition capable of forming a government.
President Macron appointed Barnier as prime minister two weeks ago and plans to present a new cabinet this week.
Barnier’s predecessor, Gabriel Attal, who had taken over as party leader of Macron’s centrist camp, had demanded a meeting with Barnier to discuss Barnier’s policy direction.
However, reports say the meeting was abruptly cancelled on Wednesday morning.
Interior Minister Gérald Darmanin also expressed his reservations about Barnier’s proposed tax increases targeting higher income earners and businesses.
Meanwhile, the European Commission has launched a deficit procedure against France over rising new debt levels, making it increasingly unlikely that the goal of reducing borrowing below the EU-imposed 3% threshold will materialize.
France currently has a public debt equivalent to 110% of its gross domestic product (GDP), making it one of the weakest economies in the eurozone.