France: PM Barnier eyes billions of euros in taxes
PARIS – France’s new Prime Minister, Michel Barnier, is planning billions of euros of tax hikes ahead of delivering his speech to the National Assembly on Tuesday to outline key policy plans, local media reported.
According to Le Parisien newspaper, Barnier is considering tax hikes of 15 billion to 18 billion euros ($16.71-20.06 billion). Besides, the plans also include income taxes for top earners, which would bring in some 3 billion euros, in addition to increasing electricity taxes for another 3 billion euros.
Le Monde newspaper reported at the weekend that the sum encompasses 8 billion euros through taxes on corporations as well as a 3 billion euro levy on energy companies and share buybacks.
The report suggested that Barnier intends to postpone France’s achievement of the eurozone’s common 3% deficit target from 2027 to 2029, in line with updated estimations by budget minister Laurent Saint-Martin, who reported a deficit increase to 6%.
At home, PM Barnier faces the challenge of addressing a significant gap in public finances amid a fragmented parliament and infighting within the minority government, which complicates efforts to implement reforms.
Abroad, France’s credibility with its European Union partners and in financial markets is at stake, particularly as its borrowing costs have risen sharply.
